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Rwanda: Lap Green makes payment for Rwandatel |
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Monday, 05 November 2007 |
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Lap Green Networks paid the Rwandan government US$ 50 million as an initial payment for an 80% stake in Rwandatel. The payment will allow Lap Green to proceed with their takeover of Rwandatel, likely on November 20.
Lap Green said they would pay the remaining US$ 50 million owed by 2009. During the bidding process, the company agreed to pay US$ 100 million for the 80% stake. The government sold the remaining 20% of Rwandatel to the Social Security Fund.
Lap Green is owned by Libya Africa Investments Portfolio for Africa, a consortium that has reorganised the African interests of the Libyan government. The company promises to invest US$ 317 million to expand Rwanda’s telecom sector. The investment includes a promise to invest in a 3G GSM mobile network with a two million subscriber capacity. The company also promised to eliminate cross-border roaming fees on calls between users in Uganda and Rwanda. Lap Green holds a 69% stake in Uganda’s UTL.
As part of the Rwandatel acquisition, Lap Green also takes over Terracom's CDMA mobile network. However, the company plans to build a new GSM network as it expands its mobile offering. Source: The New Times - WDR/Intelecon Regulatory News.
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