Of the six companies in the race for the acquisition of the majority of the capital of the incumbent carrier Uganda Telecom (UTL), the Mauritian incumbent, Mauritius Telecom, managed to snatch the place of preferred bidder. In a document related to the merger and acquisition transaction, signed by the Economic Intelligence Authority (FIA) of Uganda, the company is one whose financial credibility and technical experience have caught the attention of the authorities. Mauritius Telecom proposed US $ 45 million for the 69% stake in Uganda Telecom and US $ 100 million for the three-year investment.
In a note sent to the various administrative authorities involved in the process of transfer of the majority of UTL, the Ministry of Finance has supported the granting of the majority of the incumbent operator to Mauritius Telecom. He stated, to that effect, that “In view of the level at which we are, and with a view to quickly concluding this question, we propose the following: the administrator allocates and finalizes with Mauritius Telecom as the only credible potential partner with the government as recommended by the Financial Intelligence Authority.”
Although Mauritius Telecom has been nominated as the preferred bidder, Bemanya Twebaze, the administrator of UTL, however estimated that the offer is well below the US $ 70 million and the US $ 285 million investment, over a period of three years, proposed by Hamilton Telecom for 62% of the capital of UTL. Mauritius Telecom’s financial proposal is also lower than those of other competitors.
Teleology Holdings offered US $ 60.5 million for equities and US $ 230 million worth of investment over three years for 67 percent. Montage LLP offered US $ 60 million for equities and US $ 211 million worth of investments for 68% equities. Baylis Consortium offered US $ 55 million for equities and US $ 120 million in investments over five years for 70 percent of equities. Afrinet Communications Ltd offered US $ 67 million, but eventually withdrew its brand of interest just like Safaricom.