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Govt reclaims MTC sharesIn a move seen by many to boost local coffers, government is buying back its foreign-owned shares in MTC. Kicks foreign ownership out Image may be NSFW.
Clik here to view. Government is set to buy back 34% of MTC’s foreign-held shares from current owners, Portugal Telecom. This was revealed by Minister of Information and Communication Technology Tjekero Tweya this week. MTC’s dividends to government are also expected to raise significantly should the transaction close and the monies, generally paid over to foreign shareholders, will now remain in the country.
A statement released by the information minister states that the Government Institutions Pension Fund will fund the acquisition of the telecommunications firm.
Namibia Post Telecommunications Holdings have been instructed to devise a strategy to safeguard the operations MTC in the meantime while a technical partner will also be sought.
Said Tweya: “Cabinet took note of the progress made with regard to the buyback of the 34% foreign-owned shares in Mobile Telecommunications Network (MTC). Cabinet endorsed the Namibia Post and Telecommunications Holdings (NPTH) decision to obtain confirmation of the legal rights of SAMBA to act on behalf of Africatel B.V., before the transaction will be negotiated further. Cabinet approved NPTH and MTC to devise a strategy to safeguard the future operation of MTC by way of acquiring a technical partner which is not necessarily a shareholder.”
Tweya also explained that Cabinet approved NPTH to proceed with the proposed buying strategy of the shares, once the terms and conditions of the GIPF and [participating] financial institutions were agreed upon.
Said Tweya: “The government through NPTH reserves the right to retain ownership of the full 100% of MTC until further approved by Cabinet.”
Finance minister Calle Schlettwein also briefly addressed the acquisition at a briefing held. He dismissed the notion that the GIPF was merely bankrolling government acquisitions. “There is a notion that government has its hands on the kitty of the GIPF. We cannot dictate to the GIPF what to do with its money,” said Schlettwein in response to whether government had compelled the GIPF to fund the acquisition of MTC.
Brazilian telecommunications group Oi in June 2016 confirmed that Samba Luxco S.a.r.l., Oi’s investment partner in developing markets holding company Africatel B.V. (Africatel), agreed to reduce its Africatel stake from 25% to 14%, thereby increasing Oi’s Africatel ownership to 86%. In exchange, Africatel would transfer to Samba its 34% stake in MTC.
MTC has now gone from being a Swedish held firm to a Portuguese owned entity.
In its latest annual report, MTC stated that it saw revenue growth of 8% or N$2.1 billion for its financial year end September 2015, while data usage and customers shot up 515 and 45% respectively.
MTC reported a decrease in net profit after tax from N$504 million in 2014 to N$491 million in 2015, mainly due to the increased operational expenditure.
OGONE TLHAGE
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Govt reclaims MTC sharesIn a move seen by many to boost local coffers, government is buying back its foreign-owned shares in MTC. Kicks foreign ownership out Image may be NSFW.Clik here to view.
Government is set to buy back 34% of MTC’s foreign-held shares from current owners, Portugal Telecom. This was revealed by Minister of Information and Communication Technology Tjekero Tweya this week. MTC’s dividends to government are also expected to raise significantly should the transaction close and the monies, generally paid over to foreign shareholders, will now remain in the country.A statement released by the information minister states that the Government Institutions Pension Fund will fund the acquisition of the telecommunications firm.
Namibia Post Telecommunications Holdings have been instructed to devise a strategy to safeguard the operations MTC in the meantime while a technical partner will also be sought.
Said Tweya: “Cabinet took note of the progress made with regard to the buyback of the 34% foreign-owned shares in Mobile Telecommunications Network (MTC). Cabinet endorsed the Namibia Post and Telecommunications Holdings (NPTH) decision to obtain confirmation of the legal rights of SAMBA to act on behalf of Africatel B.V., before the transaction will be negotiated further. Cabinet approved NPTH and MTC to devise a strategy to safeguard the future operation of MTC by way of acquiring a technical partner which is not necessarily a shareholder.”
Tweya also explained that Cabinet approved NPTH to proceed with the proposed buying strategy of the shares, once the terms and conditions of the GIPF and [participating] financial institutions were agreed upon.
Said Tweya: “The government through NPTH reserves the right to retain ownership of the full 100% of MTC until further approved by Cabinet.”
Finance minister Calle Schlettwein also briefly addressed the acquisition at a briefing held. He dismissed the notion that the GIPF was merely bankrolling government acquisitions. “There is a notion that government has its hands on the kitty of the GIPF. We cannot dictate to the GIPF what to do with its money,” said Schlettwein in response to whether government had compelled the GIPF to fund the acquisition of MTC.
Brazilian telecommunications group Oi in June 2016 confirmed that Samba Luxco S.a.r.l., Oi’s investment partner in developing markets holding company Africatel B.V. (Africatel), agreed to reduce its Africatel stake from 25% to 14%, thereby increasing Oi’s Africatel ownership to 86%. In exchange, Africatel would transfer to Samba its 34% stake in MTC.
MTC has now gone from being a Swedish held firm to a Portuguese owned entity.
In its latest annual report, MTC stated that it saw revenue growth of 8% or N$2.1 billion for its financial year end September 2015, while data usage and customers shot up 515 and 45% respectively.
MTC reported a decrease in net profit after tax from N$504 million in 2014 to N$491 million in 2015, mainly due to the increased operational expenditure.
OGONE TLHAGE
