GIPF may finance MTC buyout

13 March 2018 | Business

The Government Institutions Pension Fund (GIPF) is in the process of conducting due diligence to help the government fund the planned acquisition of mobile service provider MTC.

GIPF spokesperson Daylight Ekandjo said a formal request had been received from the government for the planned acquisition. The GIPF was now conducting an assessment on the viability of the study. “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 both our regulatory and financial criteria,” said Ekandjo.

According to her, the planned purchase would also ensure that the 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 engagement with various stakeholders,” she said.

The Communications Regulatory Authority of Namibia (Cran) also recently gave its blessing for the acquisition of a 34% stake by the government.

One of the conditions is that GIPF should own 20% of MTC, as proposed by Namibia Post and Telecommunications Holdings (NPTH) in its letter last month.

Another condition was that “Mobile Telecommunications Limited must be listed on the Namibia Stock Exchange within a period of 12 months”.

Cran also said 29% of MTC shares should be sold to private and or local investors on the Namibia Stock Exchange.

Former communications minister Tjekero Tweya in December 2016 announced plans by the government to purchase 34% of MTC.

The 34% stake is owned by Samba Luxco SARL, which is incorporated in Luxembourg. MTC is owned and majority-controlled by NPTH.

Cabinet took note of the progress made with regard to the buyback of the 34% foreign-owned shares in MTC. Cabinet endorsed the NPTH decision to obtain confirmation of the legal rights of Samba to act on behalf of Africatel, 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.”

OGONE TLHAGE

Similar News

 

Otjikoto remains a B2Gold heavyweight

23 hours ago | Business

Jo-Maré Duddy – The Otjikoto gold mine, majority-owned by B2Gold Corp, was the third biggest contributor to the Vancouver-based miner’s total production for the first...

Company news in brief

23 hours ago | Business

Pick n Pay H1 profit jumpsSouth African supermarket chain Pick n Pay Stores yesterday said half-year profit before tax jumped 19.1% as price cuts attracted...

Mutorwa reinstates Gawanas-Vugs

1 day - 16 October 2018 | Business

Transport minister John Mutorwa has back-flipped on his decision to fire Beverly Gawanas-Vugs from the Namibia Airports Company (NAC) board.Mutorwa fired the entire NAC board...

Company news in brief

1 day - 16 October 2018 | Business

B2Gold keen on any African assetsCanada's B2Gold Corp is “definitely interested” in any West African assets that Barrick Gold Corp may put up for sale...

New MD for Rössing

2 days ago - 15 October 2018 | Business

Richard Storrie has been appointed as the new managing director of Rössing Uranium Limited, effective 29 October 2018. He joins Rössing from Rio Tinto Serbia...

Otjikoto’s gold production above budget

2 days ago - 15 October 2018 | Business

B2Gold’s Otjikoto Mine in Namibia delivered another quarter of solid production in the past quarter, producing 42 403 ounces of gold, the company said...

The taxability of rental deposits received

2 days ago - 15 October 2018 | Business

A general pitfall we see being applied in practice is that landlords argue the fact that because they have an unconditional liability to repay the...

Namibia Red Cross appoints SG

5 days ago - 12 October 2018 | Business

Staff ReporterThe Namibia Red Cross Society has announced the appointment of Bernadette Bock as secretary-general, effective 1 October 2018. Bock brings to the National Society...

Schlettwein seeks private sector advice

5 days ago - 12 October 2018 | Business

Businessman Leake Hangala has said that tough decisions will have to be made if Namibia is to weather the economic storm she currently finds herself...

More oil hopes dashed

6 days ago - 11 October 2018 | Business

Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, will plug and abandon the well drilled in Prospect S offshore...

Latest News

Katrina targets sex pests

23 hours ago | Education

A draft bill makes it compulsory for education minister Katrina Hanse-Himarwa to report those impregnating schoolgirls aged younger than 16 to the relevant authorities, while...

Plundered into poverty

23 hours ago | Economics

The country's raw materials continue to benefit foreign multinationals and a handful of locally connected tenderpreneurs.Despite the government's undertaking to promote 'Growth at Home' to...

Otjikoto remains a B2Gold heavyweight

23 hours ago | Business

Jo-Maré Duddy – The Otjikoto gold mine, majority-owned by B2Gold Corp, was the third biggest contributor to the Vancouver-based miner’s total production for the first...

SPYL dismayed by SOE misery

23 hours ago | Politics

The Swapo Party Youth League (SPYL) is dismayed by the squabbles and leadership battles haunting state-owned enterprises (SOEs), and has called on line ministers to...

Corruption claims taint army

23 hours ago | Columns

Namibian Sun lifted the veil last week on corruption allegations in the Namibia Defence Force (NDF), where deserving soldiers are allegedly being overlooked for promotions,...

Buy-A-Brick initiative targets 1000...

23 hours ago | Economics

These houses are meant for Namibians in the low-­to-no income groups after ­co-partners in the private sector expressed interest in funding the ­programme. Standard Bank...

New twist in Kahimise study...

23 hours ago | Government

A study loan that forms the basis of an alleged politically motivated attempt to suspend Windhoek CEO Robert Kahimise was approved by the human resources...

Mutorwa reinstates Gawanas-Vugs

23 hours ago | Transport

Transport minister John Mutorwa has reversed his decision to fire Beverly Gawanas-Vugs from the Namibia Airports Company (NAC) board.Mutorwa fired the entire NAC board last...

Company news in brief

23 hours ago | Business

Pick n Pay H1 profit jumpsSouth African supermarket chain Pick n Pay Stores yesterday said half-year profit before tax jumped 19.1% as price cuts attracted...

Load More