| The privatisation of Gabon Telecom, Gabon's state telecommunications provider, is not expected to be complete by the end of 2006. A source close to the sale attributed the delay to the planned lay-off of 25% of the workforce.
Gabon had planned to complete the sale of a 51% stake in Gabon Telecom by July.
"It became evident throughout the process that potential bidders were insistent on the government completing a social plan [layoffs] prior to closing the transaction," the source said.
"We have experienced significant appetite for the transaction, from both global and emerging market telecoms investors. We continue to expect a competitive bid process," Andrew Hunt of HSBC said in a statement.
In February, HSBC noted that over ten investors had expressed an interest in buying Gabon Telecom in a tender that is part of a privatisation programme started in 1997. 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. Its subsidiary, Libertis, holds a GSM mobile license granted in 2000 with a validity of 10 years.
Gabon Telecom operates approximately 35,000 fixed lines while mobile subsidiary Libertis has more than 200,000 mobile subscribers, equivalent to a 43% market share. Gabon Telecom generated earnings before interest, tax, depreciation and amortisation (EBITDA) of US$ 39 million in 2005 on revenues of US$ 218 million.
Source: Reuters - WDR/Intelecon Regulatory News |