The takeover of Namibian mobile operator Leo by local incumbent Telecom Namibia is close to completion after Frans Ndoroma resigned as CEO of state holding company Namibia Post and Telecommunication (NPTH). This is according to local newspaper The…
The takeover of Namibian mobile operator Leo by local incumbent Telecom Namibia is close to completion after Frans Ndoroma resigned as CEO of state holding company Namibia Post and Telecommunication (NPTH). This is according to local newspaper The Namibian.
NPTH is not only the parent company of Telecom Namibia but also has a majority stake in Mobile Telecommunications (MTC), the main mobile carrier in the country ahead of Leo and Switch.
Switch itself is a subsidiary of Telecom Namibia.
The resignation of Ndoroma at the head of NPTH was one of the regulatory requirements to alleviate concerns about potential conflicts of interest. Ndoroma will, however, remain managing director of Telecom Namibia.
Another condition to the merger is the creation of separate and independent shareholding structures for Telecom Namibia and MTC within two years of notification of the transaction.
The Namibian Competition Commission (NaCC) has already approved the deal but the Communications Authority of Namibia (Cran) has yet to green-light it, according to the report. The partial privatisation of Telecom Namibia, which is 100% government-owned, is another requirement.
The Telecom Namibia/Leo transaction was first reported at the end of last year.
Before that, in July, Egypt’s Orascom Telecom had sold Leo to Investec and Nedbank. The transaction had a value of US$60m, representing Powercom’s liabilities.
