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Invitation for Expression of Interest in The Majority Stake of Chad Telecommunication Company

15 February, 2014

Source: ICT News

The Government of the Republic of Chad has formally announced its intention to partially privatize its incumbent telecommunication operator, Societe des Telecommunications du Tchad ("Groupe SOTEL Tchad"). The announcement is in pursuant to the terms of Chad law 004/PR/96. Interested parties are urged to express their interest to acquire a majority stake in SOTEL.

One of the top priorities of the Government of the Republic of Chad is the restructuring of its telecommunications and ICT sectors to boost the availability and quality of services available to the public, particularly pertaining to the availability and quality of Internet access and mobile services. In this context the Government of the Republic of Chad has decided to partially privatize Groupe SOTEL Tchad in order to strengthen the company to become a formidable player in the telecommunications industry, through the sale of the majority of the equity of the company.

As the sole provider of fixed line ICT services, the operator of optical fibre, and as one of the three players in the Chad mobile market, Groupe SOTEL Tchad has an important role to play in the development of the ICT sector in the Republic of Chad. The Government of the Republic of Chad intends that Groupe SOTEL Tchad should fulfil this role after the privatization

Envisaged Transaction
The Government of the Republic of Chad has the intention to partially privatize SOTEL as follows:
- Sale of 80% of the equity of Groupe SOTEL Tchad
- Augmentation of the equity capitalization by capital increase
- Retaining of a minority interest for the Government of the Republic of Chad

Expression of Interest & Prequalification
The Government of the Republic of Chad invites experienced telecommunications investors to express interest in the partial privatization of Groupe SOTEL Tchad by contacting the Advisor to the Government of the Republic of Chad indicated below. Investors may be required to demonstrate their experience in successfully managing telecommunications assets and should have financing capacity in excess of EUR 200 Million if this information is not readily available from public sources. Investors have the option to express their interest as a consortium, provided that the consortium consists of majority (+51%) investor with sufficient experience managing telecommunications assets and financial capacity as indicated above. Local economic participation is encouraged.

Interested parties will be invited to sign a non-disclosure agreement ("NDA"). Following signature of the NDA, investors will be provided with further instructions on how to pre-qualify and information on the market and Groupe SOTEL Tchad in order to perform preliminary assessments of the opportunity.
Interested parties should have signed NDAs by no later than 15:00 hours Chad time on February 21st, 2014 in order to be included in the prequalification process.

The Government Advisor
The Government of the Republic of Chad has appointed Civitas Partners as its exclusive financial advisor ("Advisor") in relation to the envisaged transaction. Civitas Partners is an independent financial advisory company with substantial experience of working in Sub-Saharan Africa. It specializes in raising capital, privatization, restructuring and financing advisory for governments, state owned entities and private companies, acting as a bridge between state actors and the private sector to achieve our client's commercial goals.

Contact Details
Please direct all queries and expression of interest to the Advisor and to the Commission for the Privatization of State Assets at the following email addresses:
sotel@civitas-partners.com and secretariat.permanent@yahoo.fr
You may also contact Bell Pottinger at +44-20-7861-3925 if you have any questions.


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