Insolvency and Receivership
In February 2017, UCom, the government of Libya-owned subsidiary unilaterally pulled out of the struggling company, forcing the Uganda government to assume sole total control. In April the same year, the Uganda government placed the telco under receivership.[16]
In December 2017, Uganda announced plans to sell a majority stake in the troubled company. Nearly a dozen investors from Europe, China, South Africa and the USA expressed interest in acquiring a stake in UTL.[17]
In July 2018, The EastAfrican reported that of the investors who submitted purchase bids, Mauritius Telecom emerged as the only capable, credible, legitimate bidder, with a bid of $45 million upfront, and another $100 million over the next 36 months, for a 69-31 majority shareholding. Discussions were ongoing to close the acquisition. The Uganda Financial Intelligence Authority (FIA), successfully vetted the potential investor.[18]
In a cabinet meeting convened on Monday 1 October 2018 and chaired by President Yoweri Museveni, Taleology Holdings GIB Limited of Nigeria, was selected to operate UTL for the next 20 years. The deal included UTL's total assets, valued at USh148 billion (US$39.5 million), tax waivers, an extended frequency and Uganda's national backbone optic fibre infrastructure. In exchange, Taleology would make a non refundable US$7.1 million (USh27 billion), at signature of the paperwork and another US$63.9 million (USh240 billion) no later than 60 days from that date, otherwise they forfeit the concession.[19] When, in February 2019, Taleology failed to remit the required funding to effect the acquisition, UTL went back on the market and a new buyer was being sought.[20]
On 2 January 2020, Justice Lydia Mugambe of the Civil Division of the High Court of Uganda, appointed Ruth Sebatindira as the Administrator of Uganda Telecom Limited, under a court-appointed receivership since April 2017.[15][21] Sebatindira took over the administration of UTL from Bemanya Twebaze on 6 January 2020.[22]
