PSPF’s large cut explained

MBABANE – The Public Service Pensions Fund (PSPF) became the majority shareholder of Eswatini Mobile after a debt for equity swap. Explaining that PSPF was the largest shareholder at Eswatini Mobile, CEO of the telecommunications company Jeff Penberton said they valued the fund joining them to help build and make the company what it should be.

“We are very happy that PSPF came on board; we did a debt for equity swap, that’s what bought them the shares they have. They have also injected some funds and that is what allowed us to go from 120 sites to 200. Now that they are on board and our balance sheet is stronger, it gives us the ability to raise more funds and continue on the success that we are building,” the CEO said.

He said their expectation was that by the end of this year, they would get to 90 per cent and that next year would be at 96 per cent, which would be on par with their competitor. “So, PSPF has allowed us to accelerate getting to the 96 per cent target, Penberton said.

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There are 28 million shares that are still available and these, the CEO explained, would be used to raise capital to help take the business to where it needed to be.

However, they would not be made available to anyone outside of the current shareholding structure but priority would be given to PSPF.

“The key thing about our agreement with PSPF is that they have first call to buy new shares. So in the short-term there will be no new shares sale to external parties, but it will be for the existing shareholders to buy any shares, so they can continue to invest to get us where we want to get to,” he stated.

Asked if there was any possibility that PSPF could seek to take control of the Board chairman position now that they were the major shareholder, Penberton said the key thing was that all companies had shareholder agreements and Memorandam of Understanding to determine this.

He said as long as the shareholders were satisfied with the company’s performance, they would be fine and when they were not they would raise it with the Board.