MTC valued at N$8 billion

29 January 2021 | Business

OGONE TLHAGE



WINDHOEK

The planned listing of public entity MTC is set to unlock great value for comment, according to economist Klaus Schade, who placed its valuation upwards of N$8 billion.

He made the remarks following confirmation that the telecommunications company intends to list on the Namibia Stock Exchange (NSX) in 2022. Government had in 2016 first announced its intention to list a portion of MTC on the NSX.

“The valuation of MTC is estimated at N$8 billion or more. The revenue that can be generated from the listing depends on the final valuation and on the shareholding government intends to retain in MTC,” Shade said.

According to its balance sheet, MTC’s assets are valued at N$3.2 billion. Its board declared dividends of N$977.8 million, comprising an ordinary dividend of N$211 million, a special dividend of N$400 million paid in December 2019, and an ordinary dividend of N$366.8 million, paid in June 2020.

A first

This will make MTC the first public entity to be listed, following the footsteps of South African counterpart Telkom, which had also previously been listed on the Johannesburg Stock Exchange by that government in 2003.

Schade said revenue gains from MTC’s listing could help government build and maintain infrastructure.

“The funds could be used to finance investment into social infrastructure such as health and educational facilities and the connection to water, sanitation, electricity and internet, as well as servicing land for residential purposes and the expansion of bulk infrastructure to informal settlements,” he said.

Cash cow

The telecommunications giant’s listing could also lend a helping hand to government’s existing income streams, Schade added.

“The listing of MTC would provide the government with substantial revenue during a time of suppressed revenue from other sources,” he said.

MTC’s listing has previously also drawn the interest of the Government Institutions Pension Fund, which fancied gobbling up a significant portion itself.

Similar News

 

Twoobii takes portable broadband anywhere

6 hours ago | Business

STAFF REPORTER - The Twoobii satellite broadband service from Q-KON was recently demonstrated to be a reliable option for convenience and reliability of portable communications...

A new look for Top Score Instant

6 hours ago | Business

Augetto Graig Namib Mills is a leader in the supply of staple food in Namibia for a reason. With the launch of their new range...

Company news in brief

6 hours ago | Business

Vodafone opts for Samsung in BritainBritish telecoms group Vodafone has chosen Samsung Electronics as vendor for 5G network equipment in Britain, the pair said yesterday,...

SA govt sells majority stake in SAA

1 day - 14 June 2021 | Business

Nqobile Dludla - The South African government is selling a 51% stake in South African Airways (SAA) to Takatso consortium, which will initially commit more...

Watchdog likely to reach settlement with MTN, Telkom

1 day - 14 June 2021 | Business

South Africa's telecoms regulator said on Friday the ongoing negotiations with two companies over litigation related to the government's proposed spectrum auction will be resolved...

SA's rooibos tea on EU protection list

4 days ago - 11 June 2021 | Business

Like champagne, roquefort and Kalamata olives, South Africa's world-famous rooibos tea has been added to a European Union (EU) list of protected agricultural products and...

COMPANY NEWS IN BRIEF

4 days ago - 11 June 2021 | Business

BHP urged to target smaller deposits The world's biggest miners should consider developing smaller deposits to make the most of the commodities expected to be...

Toyota's Land Cruiser 300 breaks cover

4 days ago - 11 June 2021 | Business

The much-anticipated Land Cruiser 300 made its global debut in a YouTube-hosted worldwide premiere. As the successor to the '200-series’, the all-new flagship Land Cruiser...

NamiGreen makes strides in e-waste recycling

5 days ago - 10 June 2021 | Business

PHILLEPUS UUSIKUDespite 2020 being a year with Covid-19 restrictions which resulted in closure of businesses, seize operations and reduce output, Namibians have recycled more electronic...

Ethiopia urged to open up mobile market

5 days ago - 10 June 2021 | Business

GIULIA PARAVICINIKenyan President Uhuru Kenyatta on Tuesday urged Ethiopia to open up its telecoms sector to private mobile money business investors, a move that would...

Latest News

A new look for Top...

6 hours ago | Business

Augetto Graig Namib Mills is a leader in the supply of staple food in Namibia for a reason. With the launch of their new range...

It’s all about that print

6 hours ago | Youth

Mariselle StofbergThe vibrant and determined 23-year-old Michael Shagandjwa has shown that with the right mindset, the world truly is your oyster. Shagandjwa was born in...

Tesla to accept bitcoin again...

6 hours ago | Economics

SINGAPORE - Bitcoin hit a two-week peak just shy of US$40 000 yesterday, after another weekend reacting to tweets from Tesla boss Elon Musk, who...

WTO hopes for speedy deal...

6 hours ago | Economics

GENEVA - The head of the World Trade Organisation said yesterday she hoped that members could reach an agreement by July on improving access to...

‘Small' groups don't rule the...

6 hours ago | Economics

CARBIS BAY, England - China has pointedly cautioned Group of Seven leaders that the days when "small" groups of countries decided the fate of the...

EDITORIAL: No genuine appetite to...

6 hours ago | Opinion

Research by the Namibia Statistics Agency (NSA) shows that almost half of the Namibian population lives in multidimensional poverty.Multidimensional poverty essentially means a concoction of...

N$2m Multichoice theft trial begins

6 hours ago | Justice

Marc Springer WINDHOEKA trial in which a married couple and their accomplice are accused...

New sports stadium in Keetmanshoop

6 hours ago | Youth

Hon. Gerrit Witbooi Regional Councilor for Keetmanshoop Rural Constituency, speaking at the official handover and inauguration of the Kronlein Sports Stadium. He said that sports...

Making agriculture sexy again

6 hours ago | Agriculture

Mariselle StofbergThe Namibian Agronomic Board (NAB) officially handed over the School Garden Funding Project (SGFP) at Auas Primary School in Windhoek on 9 June. Auas...

Load More