The government is selling 80% of its stake in the fixed-line operator to a consortium comprising local and foreign partners, but would still hold the remaining 20%.

Press Corporation Limited (PCL) is leading the buying consortium. The price paid for the MTL stake, which includes 40% of mobile operator Telekom Networks Malawi, is not known.

Mutharika, in his capacity as Minister of Statutory Corporations, approved the deal. His approval follows a submission by the Privatisation Commission of a Sale and Investment Agreement.

PCL executive director Maziko Sauti Phiri says the commission expects to call for a meeting to notify the buyer of the deal's approval. Under the privatisation act, the commission is required to notify the buyer of cabinet's approval of the sale within seven days. The act also stipulates that the successful bidder shall sign a sale and purchase agreement within 14 days of receiving the notification of deal approval.

MTL is one of the few profitable state-owned enterprises and turned in a dividend of 20m kwacha (US$ 169,851) to the government in 2004.

Source: BBC and Capital Radio - WDR/Intelecon Regulatory News