A consortium led by HSBC is acting as adviser to the Gabonese government. The consortium has received information from ten interested groups, with more submissions supposedly on the way.

"We are not sure of the final number yet...We believe it will be between ten and fifteen," a banker said. The interested parties are said to include, "A number are well-known international players in global telecoms," he said.

Monday was the deadline for potential investors to submit their qualifications to participate in the privatisation process. Gabon Telecom operates approximately 35,000 fixed lines in the West African oil producer. Its subsidiary Libertis has more than 200,000 mobile phone subscribers, equivalent to a 43% market share. In 2004, Gabon Telecom had revenue of $140 million and net profits of $6 million.

The government and their advisors will select a list of qualified bidders within one week. After due diligence, bidders are expected to present binding bids within eight to twelve weeks. The financial close of the transaction is scheduled for early July.

Under the terms of the offer, Gabon Telecom will have a fixed-line telecommunications license valid for 15 years, of which five will be exclusive. Libertis holds a GSM mobile license granted in 2000 with a validity of 10 years.

Source: Reuters - WDR/Intelecon Regulatory News