Libyans Vow to Fight M7 Over UTL Stake

Libyans Vow to Fight M7 Over UTL Stake

By Serestino Tusingwire

Libyans have showed displeasure regarding how the government of Uganda misbehaved about the operations of Uganda Telecom and have consequently vowed to go down fighting to defend their interest in the company.

According to the statement released recently, though the majority shareholder (Libyans) ceased further funding to UTL over what they termed as heavy reasons, they want the government of Uganda to fully run the company in compliance with the terms of agreement.

“Moving forward and notwithstanding the decision to discontinue funding UTL, the majority shareholder expects the government of Uganda to fully comply with applicable laws and best practice concerning the protection of its investment interests in UTL, including with respect to its rights as UTL’s largest creditor,” statement reads in part.

The Libyans who have 69% of the shares also threatened to dispute any plans or efforts to undermine their position in the company.

“As a majority stakeholder, the Libyan post, Telecommunications and IT Holding Company will contest any plans to or efforts to undermine its position,” Libyans stated.

On 1st March, 2017, the Uganda government announced to have repossessed Uganda Telecom ending years of uncertainty at Uganda’s longest telecom firm.

This came on the heels of failed agreement with the Libyans on funding the indebted telecom company.

Reports show UTL has a debt of not less than 700 billion Ugandan shillings.