Millicom completed the sale of its Tigo Senegal unit to Saga Africa Holdings, first announced in July 2017 after it terminated an agreement to sell the operations to Wari Group.
Millicom had signed a deal to sell the unit to Wari Group for $129 million, but later said it had “exercised its right” to end the agreement, reportedly due to the group failing to meet a deadline to provide funds.
Wari filed an arbitration request in Paris last year, after which Senegal’s president, Macky Sall, stated the government would decide on its own ruling if the companies failed to find an agreement.
Now Sall has signed a decree approving the Saga deal because he believes Saga Africa, a consortium, is made up of telecoms experts who will add value for customers in keeping with a strategy called Plan for an Emerging Senegal, IT Web Africa reported.
Saga Africa consists of NJJ Capital, controlled by Iliad founder Xavier Niel; Sofima, a telecoms investment vehicle managed by Axian Group; and Teyliom Group, which operates as a diversifieid investment-holding group focused on west and central Africa.
The decree asked for the consortium to set competitive prices and restore purchasing power to customers.
Tigo is the number two operator in Senegal, with a 25 per cent market share in Q1 2018, according to GSMA Intelligence figures, followed closely by Sudatel (23 per cent). At the top is Orange, with a dominant 52 per cent share.
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