WASHINGTON—The government of Madagascar has launched the privatization process of the Malagasy Telecommunication Company (TELMA), offering 36 percent of the company’s shares. The tender also includes a GSM 1800 MHz license, along with fixed telephony and VSAT licenses.
The shares will be offered to a consortium of investors that includes at least one or several Malagasy nationals. The consortium also must include a telecommunications operator with an international reputation that holds at least 34 percent of the company’s registered capital.
France Cables Radio currently holds 34 percent of TELMA’s registered capital. If France Cables Radio is not the selected consortium, it has agreed to cede its entire shareholding to the chief operator. Upon completion of the privatization process, the members of the consortium will hold 70 percent of TELMA’s registered capital. Inside the consortium, foreign investors may not exceed 49 percent of the capital, and Malagasy citizens must hold at least 15 percent.
Madagascar currently has three GSM 900 MHz operators and one AMPS carrier with about 44,000 subscribers combined.
