Priority of MTC listing is to develop local financial sector - Jooste
The first objective of the planned listing of the country’s dominant mobile telecommunications provider, MTC, is to develop the country’s financial sector. This was the view of public enterprises minister Leon Jooste while responding to questions in parliament last week on the first-ever listing of a state-owned enterprise.
“Currently, a significant amount of savings leave the country for investment outlets in other countries. These savings can now be invested at home in MTC. Through our pension funds and insurance policies, many Namibians will now become shareholders of MTC,” he stated. The questions in parliament were raised by Namibia Economic Freedom Fighters(NEEF)parliamentarian Kalimbo Iipumbu, to which the minister explained that once listed, government will continue to receive dividends from MTC for its 51% shareholding. This is if and when dividends are declared by MTC’s board of directors. Jooste added that once listed, government’s 51% shareholding will appreciate in value if MTC’s share price increases on the Namibian Stock Exchange (NSX) over time.
He further clarified that government is not actively trading in shares. “When the government acquired the remaining 34% shares through NPTH in MTC from Portugal Telecom, a licensing condition was placed on MTC by the Communications Regulatory Authority of Namibia (CRAN), whereby 49% had to be sold to outside investors and for MTC to list on the NSX.”
Furthermore, the listing has an objective such as to unlock maximum shareholder value and consequently liquidity for the fiscus, whereby full private sector participation is encouraged through the creation of investment opportunities by the state. Also, an additional objective is to broaden economic participation through ownership by ordinary Namibians in a profitable public entity.
“On economic and social objectives, the listing aims to increase confidence in the government’s ongoing public enterprise restructuring programme, and also to stimulate the local economy,” stated Jooste.
MTC shares went on sale for N$8.50 per share during the Initial Public Offering, whereby interested parties can only purchase a minimum of 200 shares.