Telecom Namibia selling Neotel, Mundo Startel stakes

31 May 2011

Telecom Namibia has revealed immediate plans to sell its entire stakes in South African second national operator (SNO) Neotel and Angolan fixed-wireless telco Mundo Startel. Frans Ndoroma, managing director at the Namibian incumbent fixed line operator, told reporters that it was his intention to sell a 12.3% stake in Neotel and a 44% holding in Mundo Startel ‘as soon as possible’. Telecom has invested at least NAD544 million (USD77 million) in the two stakes it purchased six years ago, and Ndoroma said that it will ‘endeavour to recover what we invested in these companies.’ Cumulatively, the company had injected NAD429 million into Neotel by the end of April this year, according to a report in The Namibian newspaper, whilst Mundo Startel’s financial results this week revealed EBITDA losses amounting to USD290,000 (around NAD2 million) for the year ended December 2010. ‘While entering Angola was a good business case with good [prospective] short-term returns, that market has proven difficult politically, culturally, regulatory and logistically. Our business plan has not run according to plan – hence [our] decision to exit responsibly,’ Ndoroma stated.

Angola, South Africa, Liquid Telecom South Africa, Startel (Angola), Telecom Namibia (incl. TN Mobile)