Under plans outlined by Ethiopia’s Ministry of Finance (MoF), a 45% stake in monopoly telecoms provider Ethio Telecom is to be sold, Addis Fortune reports. Under the proposal, a 40% holding in the telco will be offered to an international telecoms company and a 5% interest will be offered to the public. There is also expected to be a cap on the number of shares an individual can purchase, the report said.
The paper notes that Ethio Telecom had previously hired KPMG East Africa to conduct an asset valuation and a second draft report on the work towards the partial privatisation of the state-owned telco. This was reportedly submitted last month. In terms of next steps, once the MoF hires a transaction adviser, it will then undertake legal due diligence, identify bidder selection criteria, support the bid preparation, and assist in partner selection and negotiation.