The privatisation of Botswana Telecommunications Corporation (BTC) could be delayed until as late as mid-2012, according to local media reports.
Botswana news outlet Mmegi quoted BTC chairman Len Makwinja as saying the steps leading to privatisation…
The privatisation of Botswana Telecommunications Corporation (BTC) could be delayed until as late as mid-2012, according to local media reports.
Botswana news outlet Mmegi quoted BTC chairman Len Makwinja as saying the steps leading to privatisation are “taking a bit longer than they should”.
Makwinja was, however, keen to stress that the telecoms incumbent has fulfilled all necessary requirements.
“Privatisation is an economic and financial transaction which only happens successfully with a stable organisation, healthy finances and good governance structures,” he told Mmegi. “We are attractive enough.”
Makwinja conceded BTC had hoped privatisation would take place this year and is waiting for Botswana’s Public Enterprises and Evaluation and Privatisation Agency (PEEPA) to give it a clearer indication of timing.
According to Mmegi, PEEPA have informed government officials that the process will be completed by mid-2012.
In 2010, the authorities announced plans to list 49% of the fixed-line operator on the Botswana Stock Exchange after the financial year ended March 2011.
PEEPA released a statement in August warning that certain milestones needed to be reached for an Initial Public Offering (IPO) to eventuate this year, Mmeji reported. These included finalising due diligence and submitting identified issues for government consideration.
According to the report, the plan is to divide BTC into two new entities: the listed BTC Limited and a state-owned infrastructure company.
