World Dialogue on Regulation

PC communications manager Susan Banda said that this is because MTL – which holds a 40% stake on behalf of the government in mobile provider Telekom Networks Malawi Limited (TNM) – is not a majority shareholder in the company. Banda said the assessment of MTL by bidders was completed, as were license negotiations between the prospective buyers and the Malawi Communications Regulatory Authority (Macra). She said the license covers issues of network roll-out, expansion, interconnection fees and the business plan.

Banda said the consortium members Press Corporation (PCL), Nico Holdings and Detecon, as well as financiers Development Bank of Southern Africa (DBSA) and Standard Bank will form an investment vehicle to acquire shares in MTL. She said the special purpose investment vehicle, to be called Telecom Holdings Limited, will have PCL as the majority shareholder, Nico as a minority shareholder and Detecon as the technical partner.

MTL's sale has come at a time when Telekom Malaysia, which holds 60% of TNM, has announced plans to withdraw investment from Malawi. PC executive director Maziko Sauti-Phiri has said that the government's 40% stake in TNM is part of the MTL privatisation deal. He also said MTL's shares will not be affected by Telekom Malaysia's withdrawal. Banda also said that the sale of 60% of TNM by Telekom Malaysia is a separate transaction not linked to the privatisation of MTL. Initially, Telekom Malaysia and the Malawi Government agreed that the successful bidders of MTL should buy 11% of Telekom Malaysia's shares to become a majority shareholder in TNM.

Source: Nation Malawi