Eight international companies and consortia have successfully prequalified to participate in the privatisation of Zambia Telecommunications Limited (Zamtel).

The eight were among the 30 bidders who applied to prequalify in the partial sale of the telecommunications company after the Zambia Development Agency (ZDA) officially announced its privatisation in September this year.

These include Orascom Telecom Holdings S.A.E/Telecel Globe Limited of Egypt, Altimo Holdings/Vimpelcom of Russia, Libyan LAP Greencom Limited/LAP Green Networks and Portugal’s Portugal Telecom, SGPS S.A. Other bidders are Telkom SA Limited of South Africa, UNITEL of Angola and two of India’s telecommunications giants Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited (MTNL).

All the eight participants met the criteria for prequalification as set out in the invitation to prequalify, and are internationally recognised telecommunications operators with a strong track record in emerging markets investment.

The prequalified companies and consortia will be invited to participate in the due diligence process, scheduled to commence on Monday 2nd November 2009 to 23rd December. A process letter and an information memorandum will be sent to each prequalified participant setting out in detail the structure and schedule for the due diligence, the procedure for bidding, and providing a comprehensive overview of Zamtel’s activities.

To maximise transparency and ensure total confidentiality, the ZDA has established a secure virtual data room, allowing prequalified participants to examine all key Zamtel documents remotely. The virtual data room will ensure candidates gain access to same information and at the same time. Participants will also be invited to make site visits to key Zamtel facilities, meet with management and other stakeholders and carry out their own assessment of the Zambian telecommunications market.

Before the close of the due diligence process, participants will submit a bid for between 51 percent and 75 percent of the equity in Zamtel, based on their own evaluation of the company and the market opportunity. The initial bids will be received, evaluated and short listed by the ZDA. The announcement of the shortlisted bids will be made on 11th January 2010. Thereafter, successful companies and /or consortia will be invited to take part in the next phase of the process.