Bharti Airtel Reaches New Deal to End Shareholding Row With Tanzania

By Special Correspondent, DAR ES SALAAM

BHART Airtel has agreed to end its investment row with the government of Tanzania by, among others, to increase stake owned by the Government of Tanzania in Airtel Tanzania from 40 to 49 percernt.

Following Bharti Airtel’s decision, the stake of Airtel Tanzania has now been reduced from 60 to 51 percent. The move comes after the President of the United Republic of Tanzania, Dr. John Pombe Magufuli, met on Saturday with the Chairman of Bharti Airtel, Mr Sunil Mital, at State House in Dar es Salaam, whereby they held talks on the development of discussions on the ownership of the stake of Airtel Tanzania.

Shortly of the talks, His Excellency President Dr John Pombe Magufuli expressed his happiness over the stage reached in the discussions about increasing the stake of the government in the ownership of Airtel Tanzania.

President Magufuli meets Airtel leaders in Dar

President Magufuli was also happy with Bhart Airtel’s acceptance to provide a dividend to the Government of Tanzania after the end of the recent discussions. "Other issues will continue to be discussed, but the good thing is that they have agreed to start provide dividend to the government as we have not got it for about four to 10 years.

“They will also discuss the percentage of the dividend today. So, I can see good light that can make both Bharti Airtel and the Government of Tanzania move forward including other companies," said President Magufuli.

For his part, the Chairman of Bharti Airtel, Mr Sunil Mital, said the discussions between his firm and the Government of Tanzania were going on well, adding that Bharti Airtel had been satisfied with the agreemends reached.

"I’m satisfied with the agreements reached on the issues discussed as they aim at strenthening Airtel businesses in Tanzania, bringing benefits to both parties and improving the communication services of the firm," said Mr. Mital.

The discussions between the Government of Tanzania and Bharti Tanzania are being led by Minister for Constitutional and Legal Affairs, Prof. Palamagamba Kabudi to end an investment row after the government of Tanzania discovered that it was not reaping its dues in the firm that was started from capital extracted from the state owned Tanzania Telecommunications Company (TTCL).

Ends

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