TM abandons Guinea’s Sotelgui deal

CONAKRY: Telekom Malaysia Bhd (TM) has abandoned its 60% stake in Guinea's largest telephone company, according to officials in the West African country, as part of efforts to focus on markets closer to home. 

TM paid US$45mil for the stake in Societe de Telecommunications de Guinee (Sotelgui) in 1995. 

“TM agreed amicably to leave Sotelgui without posing any problems,” Telecommunications Minister Jean Claude Sultan told Reuters. 

Sotelgui, a former state monopoly, has around 150,000 subscribers versus a mere 8,000 for its nearest competitor Intercel and 5,000 for third operator Spacetel. 

But growth had been sluggish and TM said in January it was looking to sell its stake to concentrate on regions closer to home. 

“Neither side was satisfied with the results of Sotelgui. That explains the divorce,” Sotelgui chairman Alpha Camara said on state television. 

Sotelgui would henceforth be 100% controlled by the Guinean state and would be run by a three-member management committee, he said. 

“Obviously, we are going to continue with the programme of extending our network,” Camara added.  

“That commitment was made independently of the negotiations which ended with the departure of TM.” – Reuters  

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