The Uganda government has agreed to sell Uganda Telecom (UTL) to Nigerian firm Teleology Holdings after seven bidders competed to buy the state-owned enterprise, reports the Monitor.
The decision followed a 24 September presentation to Cabinet of a financial capability report by an ad hoc committee after State Investment minister Evelyn Anite, the overseer of the UTL sale, claimed that Teleology had no technical expertise or financial muscle to run a telecom business.
Her choice, the State-founded Mauritius Telecom, was ranked second best. Other competitors, such as Safaricom Kenya’s subsidiary Afrinet and Hamilton, dropped out prematurely.
Highly-placed sources said Teleology offered USD 71 million (UGX 268 billion) against Mauritius Telecom’s USD 45 million (UGX 167 billion).
According to the daily, the decision for Teleology to take over and revamp the struggling operator polarised ministers. Four ministers who attended the decisive 01 October meeting separately spoke with the daily.