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Govt to retain MTC control
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31 May 2019 Author   Roadwin Chirara
Government, through the Namibia Post and Telecommunication Holdings, plans to retain a controlling stake in MTC when the mobile operator lists on the Namibian Stock Exchange (NSX) in 15 months’ time, the Windhoek Observer can reveal.
Information gathered this week indicates that only 49 percent of the company will be up for the taking when its initial public offering opens in March 2020.
The cash-rich Government Institutions Pension Fund (GIPF), which has not hidden its interest in buying into the mobile carrier, will be allotted a 20 percent stake as an institutional investor, with MTC staff also expected to be allocated an undisclosed amount of shares under an employee benefit scheme.
It is also not clear how much will be made available to the Namibian public, amid indication that at least 20 percent will be availed.
Public Enterprise Minister, Leon Jooste, confirmed that government will retain its control of the country’s leading operator, but remained tightlipped on the details of the listing, including the evaluation of the company.
“We are already in the IPO process and I will not mention any values to protect the integrity of the procedure,” he said.
MTC Chairperson, Elvis Nashilongo, was also tightlipped on the finer details of the transaction, referring only to a statement issued by the company.
“Commenting on the listing will be very sensitive and will be given at an appropriate time...We have to be careful, as to how and what we share. In a listing process, information should be carefully divulged,” he said.
Luxemburg-based Samba Dutchco B.V previously owned a 34 percent stake in MTC.
According to timelines by the telecommunications company, it expects to submit its listing application to the NSX in February 2020, and announce the opening date for the IPO in March 2020.
The IPO is expected to close in June 2020, and a formal listing on the NSX is anticipated by July 2020, subject to regulatory approvals.
IJG Securities and PSG Wealth Management (Namibia) have been appointed sponsoring brokers for the listing project.
If successful, MTC will become the first public enterprise to list on the local exchange following government approval of the process in November 2017.