Econet Pays Early To Secure Botswana Operator

Econet Wireless Group says that it has decided to complete its Botswanan purchase ahead of schedule. The company has paid Altech US$87.5 million for its 50% stake in Botswana-incorporated Econet Wireless Global ahead of the payment deadline which was only due at the end of October.

In a statement, Econet Group Chief Executive Officer Strive Masiyiwa said the group had decided to make full payment in advance to enable the business to function normally and to begin implementing its expansion programs. In addition, the early settlement would enable Econet to reconstitute its board of directors, a development which was important as the group has a number of projects which require the full support of a united board and shareholders to be undertaken successfully.

He said Econet Wireless Global would continue to operate as a Botswana-based wholly-owned subsidiary of the group.

"This will enable the business to function normally and begin to implement its own expansion programs. An early settlement also allows us to reconstitute the board and also complete some of the projects in the pipeline. Now that we have paid Altech, their directors on our board have also resigned and we can now replace them which is important for our corporate governance," he said.

Masiyiwa said the group will continue with its expansion program in the telecommunications sector and also with the arbitration process in Nigeria to increase its stake in Vee Mobile, formerly Econet Wireless Nigeria."

Posted to the site on 21st September 2005