SamoaTel is to be sold later this year.
“Although we recognise it is an aggressive timetable, we are hoping to complete the transaction on the third quarter of 2010,” said Chief Executive Officer of Ministry of Finance, Tupa’imatuna Iulai Lavea, in a release.

The release was issued to the Samoa Observer by the Privatisation Committee, which is in charge of the privatisation process.
In preparation, a team of consultants last month analysed SamoaTel as part of the pre-sale process, which includes due diligence.

The aim in selling SamoaTel is to improve the quality and range of telecommunications services, the Privatisation Committee says.
“The privatisation of SamoaTel is part of the liberalisation plan allowing for more competition in the telecoms services market with effectively started in 2006 with the licensing of cellular operator, Digicel,” it says.

“It is also part of Government policy to divert its interest from activities that can be provided by the private sector and concentrate on core services for the community.”

stories/LN1/0000000000000000000000011_SamoaTel.gif" border="0" title="The privatisation of SamoaTel is part of the plan to allow more competition in the telecoms market." align="left" />The team met with principal stakeholders such as Government Ministries, Chief Executive Officers of various ministries and with the Chairman of the Board and senior management of SamoaTel.

They also met with the Regulator, the Chamber of Commerce, and Samoa Tourism Authority and SIFA officials.
The technical members of the team visited several of the modern installations of SamoaTel and commenced legal and technical due diligence including market assessment.
An Inception Report has been submitted by the consulting team to the Privatisation Committee.

The report outlined the way forward for Government as well as highlighting key issues which require Government decisions to ensure a successful sale is achieved.
In parallel to the privatisation of SamoaTel, the Ministry of Finance has also commenced work to establish a Unit Trust of Samoa.

Under which, a percentage of the shareholding of SamoaTel will be transferred for local participation.
The level of that percentage will be decided by Cabinet in due course.
The Unit Trust will be a vehicle for any Samoan, either local or overseas, to indirectly own shares in SamoaTel.
The Unit Trust is expected to be launched in May 2010.

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