MTC raises possibility of NSX listing
As the desire for a 34% stake in MTC grows, the telecommunications company this week invited bids from stockbrokers, with a view to have its shares listed on the Namibia Stock Exchange (NSX).
It is not clear at this stage how many shares MTC may list or whether this is the route it may ultimately take, with spokesperson John Ekongo not shedding much light on the development.
Government had in December 2016 first announced its plan to acquire a 34% stake in MTC. Should it happen, government will for the first time ever hold a 100% stake in the company. It currently holds a 66% stake, while Samba Luxco SARL holds the remaining 34% in MTC.
Ekongo said the planned listing was at the beginning stages and that not much had been done, while briefly saying: “This is in the placenta stage.”
The Communications Regulatory Authority of Namibia (Cran) has in the past suggested that a considerable stake be listed on the NSX. One of the conditions is that the Government Institutions Pension Fund (GIPF) should own 20% of MTC, as proposed by Namibia Post and Telecommunications Holdings (NPTH) last month.
Another condition was that MTC must be listed on the NSX within a period of 12 months.
Meanwhile, GIPF also recently voiced its intent to purchase a 34% stake in MTC, from Samba. The fund had been identified as “possible financier” by government for the shares.
GIPF spokesperson Daylight Ekandjo said a formal request was received from the government for the planned acquisition. GIPF is now conducting a viability assessment.
“GIPF received a request from government, however, we are in the process of carrying out due diligence to determine if we will invest.
“As one of the largest local investors, GIPF is committed to invest in Namibian assets that meet our regulatory and financial criteria,” said Ekandjo.
According to her, the planned purchase would also ensure GIPF complies with pension regulations, which require local investment managers to have a minimum of 45% of their total assets under management in local instruments.
“This is in line with proposed changes to allow pension funds to invest a minimum of 45% of their assets in Namibia, which was announced by the finance ministry,” she said.
“At this point, we are unable to determine how long the due diligence process will take, as it involves engagements with various stakeholders.”
OGONE TLHAGE
It is not clear at this stage how many shares MTC may list or whether this is the route it may ultimately take, with spokesperson John Ekongo not shedding much light on the development.
Government had in December 2016 first announced its plan to acquire a 34% stake in MTC. Should it happen, government will for the first time ever hold a 100% stake in the company. It currently holds a 66% stake, while Samba Luxco SARL holds the remaining 34% in MTC.
Ekongo said the planned listing was at the beginning stages and that not much had been done, while briefly saying: “This is in the placenta stage.”
The Communications Regulatory Authority of Namibia (Cran) has in the past suggested that a considerable stake be listed on the NSX. One of the conditions is that the Government Institutions Pension Fund (GIPF) should own 20% of MTC, as proposed by Namibia Post and Telecommunications Holdings (NPTH) last month.
Another condition was that MTC must be listed on the NSX within a period of 12 months.
Meanwhile, GIPF also recently voiced its intent to purchase a 34% stake in MTC, from Samba. The fund had been identified as “possible financier” by government for the shares.
GIPF spokesperson Daylight Ekandjo said a formal request was received from the government for the planned acquisition. GIPF is now conducting a viability assessment.
“GIPF received a request from government, however, we are in the process of carrying out due diligence to determine if we will invest.
“As one of the largest local investors, GIPF is committed to invest in Namibian assets that meet our regulatory and financial criteria,” said Ekandjo.
According to her, the planned purchase would also ensure GIPF complies with pension regulations, which require local investment managers to have a minimum of 45% of their total assets under management in local instruments.
“This is in line with proposed changes to allow pension funds to invest a minimum of 45% of their assets in Namibia, which was announced by the finance ministry,” she said.
“At this point, we are unable to determine how long the due diligence process will take, as it involves engagements with various stakeholders.”
OGONE TLHAGE
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