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Millicom International Cellular (MIC) has concluded the acquisition of an 85% stake in mobile operator Zanzibar Telecom (Zantel).

The takeover was made through an announcement, after receiving the necessary regulatory approval.

This means Millicom International Cellular is in the process becoming the second largest mobile operator in Tanzania by subscribers.

Zantel is the leading mobile telecom operator on the island of Zanzibar, and had gross revenues of USD82 million in 2014 with an approximate 5% share of the overall Tanzanian market.

Millicom signed a share purchase agreement to acquire an 85% stake in Zantel from Etisalat Group in June this year and the European telco agreed to pay a cash consideration of just USD1 but assume total debt obligations of USD74 million.

The government of Zanzibar has retained its 15% stake in the company.