Government takes full control of MTC

NAMIBIA Post and Telecom Holdings (NPTH) has acquired an additional 49 per cent shareholding in Mobile Telecommunications Limited (MTC) from two Swedish companies, making it the sole owner of the cellular company.

NPTH is 100 per cent owned by the Namibian Government. Overseas Telecom AB, which had 26 per cent ownership, and Swedfund International AB, which held 23 per cent, offered to sell their shares in MTC to NPTH for N$388 million, with an additional N$110 million maximum to be paid over three years, depending on MTC’s financial performance.The Chairman of NPTH, Steve Motinga, confirmed that his company had accepted the offer.He said that funding had been secured through a consortium loan between First National Bank, Commercial Bank of Namibia, Bank Windhoek and Standard Bank Namibia.According to Motinga, NPTH intended to dispose of some of the shares by selling 15 per cent to a black economic empowerment (BEE) group of Namibian citizens and 34 per cent to an as-yet unidentified strategic partner.Bengt Strenge, a Swedish national, will stay on as Managing Director at MTC for at least another year, and all 200-plus staff will be retained.Sylvester Black, an NPTH board member, said more staff would probably be hired as NPTH had a greater interest in reinvesting in MTC.Motinga said:”Now that the NPTH controls 100 per cent of the share capital in MTC, the holdings company will ensure that capital investments in the mobile infrastructure are done, and are not only limited to addressing the current congestion in the network, but also to ensure that MTC will continue with its normal business operations as usual.”The MD of Overseas Telecom AB, Anders Eckman, said his company was proud to have been associated with MTC, that it was now mature, and that it was the right time for his company to make an exit.Olle Arefalk, MD of Swedfund International AB, explained that his was a development finance institution and that 10 years was a long time for them to be involved in a project.NPTH’s Motinga said:”We are now in total control of MTC, although this is only temporary until we have more Namibian owners and strategic technical partners on board of this ship.This excellent acquisition is enabling us to direct the future of this company in such a way that we can bring more benefits to the mobile users.”Overseas Telecom AB, which had 26 per cent ownership, and Swedfund International AB, which held 23 per cent, offered to sell their shares in MTC to NPTH for N$388 million, with an additional N$110 million maximum to be paid over three years, depending on MTC’s financial performance.The Chairman of NPTH, Steve Motinga, confirmed that his company had accepted the offer.He said that funding had been secured through a consortium loan between First National Bank, Commercial Bank of Namibia, Bank Windhoek and Standard Bank Namibia.According to Motinga, NPTH intended to dispose of some of the shares by selling 15 per cent to a black economic empowerment (BEE) group of Namibian citizens and 34 per cent to an as-yet unidentified strategic partner.Bengt Strenge, a Swedish national, will stay on as Managing Director at MTC for at least another year, and all 200-plus staff will be retained.Sylvester Black, an NPTH board member, said more staff would probably be hired as NPTH had a greater interest in reinvesting in MTC.Motinga said:”Now that the NPTH controls 100 per cent of the share capital in MTC, the holdings company will ensure that capital investments in the mobile infrastructure are done, and are not only limited to addressing the current congestion in the network, but also to ensure that MTC will continue with its normal business operations as usual.”The MD of Overseas Telecom AB, Anders Eckman, said his company was proud to have been associated with MTC, that it was now mature, and that it was the right time for his company to make an exit.Olle Arefalk, MD of Swedfund International AB, explained that his was a development finance institution and that 10 years was a long time for them to be involved in a project.NPTH’s Motinga said:”We are now in total control of MTC, although this is only temporary until we have more Namibian owners and strategic technical partners on board of this ship.This excellent acquisition is enabling us to direct the future of this company in such a way that we can bring more benefits to the mobile users.”