Christmas bargain!!!

After months of speculation and waiting, prospective investors of Botswana Telecommunications Corporation Limited (BTCL) can now go into Christmas fiesta, well aware that the company share price will be priced at P1, 00.

This is according to fresh information contained in the minutes of the Public Procurement and Asset Disposal Board (PPADB) sitting of December 3, 2015. According to the documents, Public Enterprise Evaluation and Privatisation Agency (PEEPA), through finance ministry has submitted an application for the Enterprise Value and Share price of BTCL.

The submission has since been approved by the PPADB board, which puts the share price of the state telecoms company at P1, 00 and its value at P800 million. Speaking to Business Trends on Tuesday, transport and communications minister, Tshenolo Mabeo said he is aware that the company’s value and Initial Public Offer (IPO) share price has been concluded. “We want to launch the process (of the IPO) before the end of December,” disclosed the minister.

The IPO is launched at a time when most prospective consumers and investors have already committed their funds for December period. Mabeo said he is aware of that and the IPO will run for eight weeks, with possible extension so as to ensure all interested parties are given a fair chance of taking part in the whole process.

Previous valuations of BTCL stood at well over P2 billion. Is the current P800 million a fair value of the government parastatal? “Remember, at some point some assets of BTCL were separated to form BoFiNet. This means some of these assets have been transferred to the new entity. In valuing BTCL we have appointed a team of professionals. Who am I to doubt them?” he asked rhetorically.

BoFinet is a government-owned company, which sells wholesale telecommunications services to providers in the country. The IPO process of BTCL has been rigorous. Relevant stakeholders such as Botswana Stock Exchange (BSE), PPADB, BTCL, finance and development planning ministry, have been consulted, said the minister.

The BTCL listing has been delayed for several years now. The completion of the valuation of the fixed and non-fixed telecommunications company paves way for its subsequent listing at the BSE.

The actual listing is likely to be conducted in the first quarter of the next year. It will be the first of its kind in which a government entity is being part-sold under the privatisation process. Under the approved BTCL Transitional Act, 49 percent of the company will be ceded to local investors.