Analysis of the acquisition process of Uganda Telecom by LAP Greencom
Part of : MIBES Transactions : international journal ; Vol.1, No.1, 2007, pages 108-129
Issue:
Pages:
108-129
Author:
Abstract:
This paper examines the recent acquisition of Uganda Telecom. The uniqueness of this acquisition is based on the fact that not only is this company operating in emerging markets (Africa and the Middle East), it is operating in the context of the African telecom market where lately liberalization and deregulation have taken root and a new phenomenon where multinational telecom companies aggressively pursuing licenses or acquiring smaller telecom companies in a bid to take over the market has emerged. It recounts the events surrounding Uganda Telecom's bid to survive in the wake of increasing multinational competition, reducing margins, fast changing technology and deregulation. As a follow-up on the World Bank led privatization wave which swept across the world where government owned public enterprises, of which Uganda Telecom was one, were sold off to bring efficiency in markets and drive growth in economies, it tests the economic assumptions and theory that lent credibility to Government of Uganda model to telecom privatization where Uganda Telecom was not fully divested in order to protect the young telecom market as it introduced competition. The main discussion also covers the nature and size of suitors this acquisition attracted, the motivations of each of the parties, the value at which this company was eventually sold clearly pointing to its potential in the market and the opportunity available. And whereas the takeover was an inevitable choice, the discussion covers some of the strategies that ensured that the previous shareholder maximized the company's value. Now that the sale has been concluded it also looks at the events immediately surrounding the post agreement phase and concludes with key recommendations and strategies on success going forward.
Subject (LC):
Keywords:
acquisition, process, international, strategy, telecommunications
Notes:
Περιέχει παραρτήματα, σημειώσεις και βιβλιογραφία
