Govt seeks BEE partners in MTC cellular business :: Namibia Internet Gateway cc ::

Articles: Govt seeks BEE partners in MTC cellular business

Posted by admin on Monday, July 19, 2004 - 02:19 AM

GOVERNMENT has begun identifying potential black empowerment groups to buy into the country's sole cellular provider, Mobile Telecommunications Limited (MTC).
In May, Namibia Post and Telecom Holdings (NPTH) acquired an additional 49 per cent shareholding in MTC at a cost of N$388 million from two Swedish companies - Telia International AB and Swedfund International. NPTH is 100 per cent owned by Government. It was decided that at least 15 per cent of the shares would be sold to black empowerment groups and the other 34 per cent to a technical strategic partner. Cabinet has established a Technical Committee - comprised of representatives from the Ministries of Works, Finance and Information as well as the Attorney General's office and trade unions - to handle the alienation of the minority shareholding in MTC. At a meeting on June 22, Cabinet endorsed that the Office of the Prime Minister should co-ordinate issues related to empowerment groups and the equity involvement of State-owned enterprises. Once potential partners have been identified, Cabinet approval will once again be sought before they are finalised. Cabinet has also authorised the Ministers of Works, Transport and Communication and Information and Broadcasting to discuss the approval of the sale of shares with the Namibia Communications Commission. The NCC has already approved an application by the Managing Director of MTC to change the shareholding structure of the company. MTC obtained a cellular telecommunications licence in 1995 for 15 years.

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