According to The EastAfrican newspaper Uganda Telecom (UTL) is being restructured in order to prepare it for an initial public offering (IPO) in January 2009. UTL was privatised in 2000 when Ucom, a consortium backed by Swiss registered Telecel International, Germany’s Detecon and Orascom of Egypt, paid USD33 million for a 51% stake. In April this year the Libyan government‘s investment arm — the Libya Africa Portfolio (LAP) — bought out Ucom’s stake. At the same time, the Ugandan government ceded 18% of its shares to LAP, raising LAP’s holding to 69%.
Under the terms of the original sell-off, UTL was required to list on the national stock exchange within two years, on the proviso that it had been audited and shown to be making ‘a healthy profit’. According to The EastAfrican UTL’s income last year was around UGS114 billion (USD67.4 million).