Vodafone Zambia up for grabs
Written by Millennium on July 30, 2019
SUN BUSINESS REPORTER writes
@SunZambian
The sale of Vodafone Zambia to the new owners is expected to be completed by next month, says company spokesperson Mutale Kapaso.
Ms. Kapaso states that the arrival of new shareholders was expected to inject capital funding that would enable Vodafone Zambia expand its operations countrywide and launch the long-awaited Voice and SMS services.
In a statement Ms Kapaso noted that due to the delay in capital injection, some of the company’s network coverage areas had consequently experienced outages.
“Mobile Broadband Limited trading as Vodafone Zambia launched its operations in 2016, introducing the first 4G high speed mobile internet network into the Zambian market. It grew rapidly on account of its next generation innovation on products and services offered to customers,
“ Unfortunately, the withholding of funds by shareholders of the holding company – Afrimax Holdings BV in 2017 led to the company undergoing financial distress which led to employees petitioning the court for Business Rescue while it embarked on a process of obtaining new shareholders.” she said
Ms Kapaso said Vodafone Zambia then started Business Rescue proceedings following the approval of the same by the High Court on October 15, 2018.
Through the supervision of the Business Rescue Administrator (BRA) and the court, a business rescue plan was developed for implementation.
The plan encompassed restructuring of the company’s affairs, business, property, debt and other liabilities and equity in a manner that maximizes the company’s continued existence and growth on a financially sound basis, resulting in a better return for all its stakeholders.
“This process also provided MBL a temporary moratorium or stay on the rights of claimants against the company enabling management and employees to focus on the company’s recovery,” she said.
She said during the BRA, management, employees, stakeholders and with the assistance of key suppliers, kept the business running to enable service provision to customers as well as ensure that MBL was saleable to its soon to be new owners.
“It is also important to note that due to the delay in capital injection, some of our areas with network coverage have consequently experienced network outages,
“The arrival of new shareholders is expected to inject capital funding that will enable MBL to expand its operations countrywide and launch the long-awaited Voice and SMS services,
“We take this opportunity to sincerely apologize for the continued network outages we are still experiencing in some areas of Lusaka and the Copperbelt. With the acquisition process soon finalizing, these outages will soon be resolved,” she said
