GIPF studies MTC deal
The government announced its intention to acquire MTC's remaining share capital from SAMBA in December 2016.
The Government Institutions Pension Fund is negotiating the acquisition of the remaining shares in Mobile Telecommunications Limited (MTC), says GIPF spokesperson Daylight Ekandjo.
Information minister Tjekero Tweya announced the government's intention to acquire 33% of MTC from SAMBA in December 2016.
Finding itself in a financial conundrum, the government turned to the GIPF to fund the transaction.
“We are in talks that could see GIPF acquiring a substantial shareholding in MTC. This process will follow a due diligence to determine if we want to buy the shares which will be based on merit.
“Furthermore, GIPF is required under pension fund regulations to invest locally, and a potential investment in MTC could help us in fulfilling that objective. We are also of the opinion that MTC would be a good investment,” Ekandjo said.
“We are evaluating all options. We have to form an opinion on what a fair price for such an acquisition would be, compare that to what price the shareholding is offered to us, and then decide whether it is worth pursuing. At this point no decision to invest has yet been made.”
Breaking the news of the government's planned acquisition, Tweya said: “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.”
Finance minister Calle Schlettwein said at a press conference in December that the government did not dictate to the GIPF what to do with its money. “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,” he said.
OGONE TLHAGE
Information minister Tjekero Tweya announced the government's intention to acquire 33% of MTC from SAMBA in December 2016.
Finding itself in a financial conundrum, the government turned to the GIPF to fund the transaction.
“We are in talks that could see GIPF acquiring a substantial shareholding in MTC. This process will follow a due diligence to determine if we want to buy the shares which will be based on merit.
“Furthermore, GIPF is required under pension fund regulations to invest locally, and a potential investment in MTC could help us in fulfilling that objective. We are also of the opinion that MTC would be a good investment,” Ekandjo said.
“We are evaluating all options. We have to form an opinion on what a fair price for such an acquisition would be, compare that to what price the shareholding is offered to us, and then decide whether it is worth pursuing. At this point no decision to invest has yet been made.”
Breaking the news of the government's planned acquisition, Tweya said: “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.”
Finance minister Calle Schlettwein said at a press conference in December that the government did not dictate to the GIPF what to do with its money. “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,” he said.
OGONE TLHAGE
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