NPTH undecided over unsold MTC shares
Govt to use income to settle debts
MTC's shares traded at N$8 apiece, while its market capitalisation was N$6 billion as of Wednesday, 6 July.
Namibia Post and Telecommunications Holdings (NPTH) is set to advise government on the way forward regarding a portion of MTC shares that could not be sold on the Namibia Stock Exchange when the company was listed last November.
The matter regarding the telecommunications giant’s shares had come up during an annual general meeting held by NPTH.
The company holds 51% ownership in MTC and intended to sell 49% to members of the public as well as institutional investors. Only 40% of the earmarked 49% had been sold, the stakeholders attending the meeting were informed.
Namibian Sun asked NPTH’s interim CEO Kristofin Itembu what the next course of action was regarding the portion of shares that could not be sold.
“We are still busy with discussions on the matter. We will inform the public on the way forward. We are still busy with valuations; it will become public information soon,” she said.
According to her, the company’s position would be clear in the next two months.
MTC’s shares traded at N$8 apiece, while its market capitalisation was N$6 billion as of Wednesday, 6 July.
Eurobond settlement
Government had planned to use the proceeds of the sale of its MTC shares to settle its maturing Eurobond debt obligation while also funding its budget deficit. This according to finance minister Iipumbu Shiimi, who said half of the proceeds from the listing would go towards the latter.
MTC is the only public entity to be listed by government to date.
The telecommunications company paid N$542 million in dividends to the state for the 2020/2021 financial year.
At the time of the listing, government expected about N$3 billion from the process, therefore earmarking some N$1.5 billion to help cover the estimated budget deficit of N$16 billion in 2021/22.
The rest would be “ring-fenced for productive activities and be utilised in a manner that reaps long-term benefits for the country”, Shiimi’s medium-term budget documents read.
The matter regarding the telecommunications giant’s shares had come up during an annual general meeting held by NPTH.
The company holds 51% ownership in MTC and intended to sell 49% to members of the public as well as institutional investors. Only 40% of the earmarked 49% had been sold, the stakeholders attending the meeting were informed.
Namibian Sun asked NPTH’s interim CEO Kristofin Itembu what the next course of action was regarding the portion of shares that could not be sold.
“We are still busy with discussions on the matter. We will inform the public on the way forward. We are still busy with valuations; it will become public information soon,” she said.
According to her, the company’s position would be clear in the next two months.
MTC’s shares traded at N$8 apiece, while its market capitalisation was N$6 billion as of Wednesday, 6 July.
Eurobond settlement
Government had planned to use the proceeds of the sale of its MTC shares to settle its maturing Eurobond debt obligation while also funding its budget deficit. This according to finance minister Iipumbu Shiimi, who said half of the proceeds from the listing would go towards the latter.
MTC is the only public entity to be listed by government to date.
The telecommunications company paid N$542 million in dividends to the state for the 2020/2021 financial year.
At the time of the listing, government expected about N$3 billion from the process, therefore earmarking some N$1.5 billion to help cover the estimated budget deficit of N$16 billion in 2021/22.
The rest would be “ring-fenced for productive activities and be utilised in a manner that reaps long-term benefits for the country”, Shiimi’s medium-term budget documents read.
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