Online Version

Facebook Feed

  • Killings of journalists up 50% in 2022, half targeted off duty    January 25, 2023
    Eighty-six journalists and media workers were killed around the world in 2022 – one every four days, according to UNESCO data, highlighting the grave risks and vulnerabilities that journalists continue to face in the course of their work.   […]
  • Judge Tau; please don’t stifle public scrutiny of the Court of AppealJanuary 25, 2023
    Her utterances are misplaced and must be condemned with the contempt it deserves ADAM PHETLHE The Patriot on Sunday dated 15 January 2022 carried an article titled ‘Judge Tau defends CoA Integrity’, with sub-headings “Complains of discrediting reckless statements; […]
  • Miss Botswana 2022 is the Face of KGK DiamondsJanuary 19, 2023
    Its been an exciting first week back to her MBW duties and we kick off the year with an official announcement that Our Queen is The face of KGK Diamonds. Lesego Chombo alongside Nigel Amos was the show stopper […]
  • Executives to watch in 2023January 19, 2023
    A year is often too short to demonstrate your worth, yet that’s exactly what the newly appointed Chief Executive Officers (CEOs) have to do to show that they deserve their enviable roles. PATRIOT BUSINESS looks at CEOs who shall […]
  • BLP TEST AP/BCP UNITY TALKSJanuary 19, 2023
    BAKANG TIRO editors@thepatriot.co.bw The new entrant in the cooperation talks between Alliance for Progressives (AP) and Botswana Congress Party (BCP) – Botswana Labour Party (BLP) has thrown spanner in the works by demanding that both AP and BCP yield […]
  • About Us
  • Advertise
  • Disclaimer
  • Contact Us
  • Login
  • Register
Friday, January 27, 2023
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home News

BPOPF, Mascom frustrate MTN

patriot by patriot
January 16, 2021
in News
242 10
0
BPOPF, Mascom frustrate MTN
491
SHARES
1.4k
VIEWS
ShareShareShare

The dispute over shareholding at telecommunications giant Mascom Wireless enters mediation next week, following a protracted showdown/ standoff between Pan African telecommunications behemoth, MTN of South Africa and DECI -an investment vehicle owned by Botswana Public Officers Pension Fund (BPOPF).

Francistown-based corporate lawyer, Sefelana Thapelo, has been agreed upon and appointed as the mediator in the dispute.

The public service pension fund who are the second largest shareholder at Mascom, through an investment vehicle called DECI (40%), have set in motion a process to force MTN (who hold 53% shareholding) to offer them a right of refusal -conferred on them as pre-emptive rights stipulated in the shareholders’ agreement, failing which BPOPF is planning to invoke a forced sale. Econet (who own only 7% shareholding at Mascom) is alleged to have made an unsolicited bid for the shares held by MTN at Mascom, a development which is being vigorously contested by BPOPF. Econet Wireless founder Strive Masiyiwa – a born ICT billionaire, while addressing a youth entrepreneurship Town Hall meeting in Gaborone alongside President Mokgweetsi Masisi in April 2019, said the Mascom transaction was almost a done deal only awaiting finalization to confirm the acquisition of MTN shares. Coincidentally, Masiyiwa is also the founder of Mascom -an acronym for Masiyiwa Communications. 

The Patriot on Sunday has it on good authority that things came to a head when MTN submitted a request to executive management at Mascom Wireless seeking information, which they needed to submit to Botswana Communications Regulatory Authority (BOCRA) to facilitate the sale and transfer of their shareholding to Econet estimated to cost about US$30million. Management put a spanner in the works by declining the request and instead referred the matter to the company’s Board of Directors, whose chairman is a member of the board of trustees at BPOPF.

Notwithstanding the challenges in securing crucial information to meet the requirements of the Regulator in the envisaged transaction, MTN was advised to engage BPOPF because their proposed sale of shares to Econet effectively changes shareholding and ownership of Mascom.

From the onset BPOPF argued that Clause 12 of the Shareholders Agreement confers pre-emptive rights on them, especially when the sale of shares would result in the change of control in the company (Mascom). As a consequence, BPOPF further argued that in this case, the transaction would result in change of control hence MTN should give BPOPF a preferential offer rather that bringing their preferred buyer -Econet. A letter was written by BPOPF to MTN to this effect. 

MTN replied the letter contending that they do not agree with BPOPF’s interpretation of Clause 12 of the Shareholders Agreement. Frustrated with corporate bureaucracy, MTN in its response, requested to meet BPOPF as a shareholder to discuss the matter. BPOPF declined to honour the invitation, arguing that they do not hold the shares at Mascom directly and therefore insisting that the issue should be dealt with by DECI, an investment vehicle that holds shareholding at Mascom on behalf of the Fund.

The DECI Board met and agreed that parties or shareholders do not agree on the interpretation of Clause 12 and as such it was agreed that the interpretation issue should be referred to an arbitration process, which is the next dispute resolution process as outlined in the shareholders’ agreement. The dispute resolution process has started; a mediator has been identified and agreed upon.

Central to the standoff is the interpretation of Clause 12 of the Shareholders Agreement which prescribes what should happen in case of change of control (shareholding) at Mascom. While MTN is adamant that Clause 12 only applies after there has been a change of shareholding/ control, BPOPF got legal opinion after learning about the unsolicited bid from Econet and were advised that any sale of shares will effectively change management control and ownership at Mascom. Therefore, BPOPF demand that they be granted preferential first option of refusal for acquisition of any shares because they are the second biggest shareholder in the company.

Should Econet acquire MTN shares they will gain majority shareholding and consequently gain management control at Mascom, hence the premature announcement by Masiyiwa, while visiting Botswana in April, that he will list some of the ‘soon to be acquired’ shares on the Botswana Stock Exchange once the acquisition is complete to give locals some ownership. BPOPF board on the other hand has instructed management to use anything at their disposal to acquire the MTN shares that have already been declared up for sale. 

Efforts to reach MTN representative in Mascom board of directors, Godfrey Motsa, were unsuccessful as repeated calls to his South African cell phone number were not answered. Mascom Board chairman, Tobokani Rari, declined to shed light on the developments saying the matter is internal. 

Meanwhile The Patriot on Sunday is reliably informed that it is only a matter of time before Mascom Acting Chief Executive Officer Dzene Makhwade-Seboni is announced as a substantive. Seboni, the former Chief Operations Officer who has been acting CEO since April 01, 2019 is currently considering an offer extended to her by the board to replace Portuguese Jose Couciero who led the company for 17 years.

Related

Tags: BPOPF

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
  • Killings of journalists up 50% in 2022, half targeted off duty    January 25, 2023
    Eighty-six journalists and media workers were killed around the world in 2022 – one every four days, according to UNESCO data, highlighting the grave risks and vulnerabilities that journalists continue to face in the course of their work.   […]
  • Judge Tau; please don’t stifle public scrutiny of the Court of AppealJanuary 25, 2023
    Her utterances are misplaced and must be condemned with the contempt it deserves ADAM PHETLHE The Patriot on Sunday dated 15 January 2022 carried an article titled ‘Judge Tau defends CoA Integrity’, with sub-headings “Complains of discrediting reckless statements; […]
  • Miss Botswana 2022 is the Face of KGK DiamondsJanuary 19, 2023
    Its been an exciting first week back to her MBW duties and we kick off the year with an official announcement that Our Queen is The face of KGK Diamonds. Lesego Chombo alongside Nigel Amos was the show stopper […]
  • Executives to watch in 2023January 19, 2023
    A year is often too short to demonstrate your worth, yet that’s exactly what the newly appointed Chief Executive Officers (CEOs) have to do to show that they deserve their enviable roles. PATRIOT BUSINESS looks at CEOs who shall […]
  • BLP TEST AP/BCP UNITY TALKSJanuary 19, 2023
    BAKANG TIRO editors@thepatriot.co.bw The new entrant in the cooperation talks between Alliance for Progressives (AP) and Botswana Congress Party (BCP) – Botswana Labour Party (BLP) has thrown spanner in the works by demanding that both AP and BCP yield […]
The Patriot On Sunday

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?