Econet has put Kwesé, its Ugandan subsidiary, on sale after the Zimbabwe-based media company was last month put under administration due to failure to service debt obligations.
The company, according to Bloomberg, an online news agency, acting through its administrators – Ernst & Young – at the weekend placed newspaper adverts in Zimbabwean media, notifying prospective investors and creditors that it would oversee offers for all or part of the company’s shareholdings in its subsidiaries including in Uganda.
Mr Ben Mwine, the Kwesé Uganda general manager, who was out of the country, at the weekend said the administrators are in search of investors with the hope of sustaining the broadcaster on the market.
“We are having discussions with potential investors and we believe within the next weeks or months, we should know the way forward. Currently, the administrator [Ernst & Young] is handling the entire process,” he said, noting that they were trying to make “sure that we give the business a good chance and sustain the product because it has potential not only in Uganda but in other markets”.
Econet, Bloomberg indicated, will also sell its interest in Botswana, South Africa, Zimbabwe, Lesotho, Zambia, Nigeria, Rwanda, Tanzania, Malawi, Mauritius, Ghana, Kenya and Dubai.
The media company, trading in Uganda as Kwesé TV, was launched in the country on October 17, 2017, joining a highly competitive market that is largely dominated by Multichoice products – GOtv and DStv, from South Africa – and Chinese StarTimes.
Last month, the company was put under administration and Ernst & Young was appointed to manage the process.