MTN Denies Reports of Hostile Takeover Bid for Botswana Mobile Network
Published on: 12th Feb 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
South Africa's MTN Group has dismissed speculation that it is interested in raising its stake in its Botswana based subsidiary.
MTN Group labelled as 'pure fabrication' local media reports that it was planning a hostile takeover of the 47% that it doesn't currently own in Mascom Wireless.
"As an emerging markets operator, this model is in keeping with our commitment to improve telecommunications in the countries where we operate. We also wish to reiterate that the report that appeared in local media in Botswana on Friday, 24 January 2014, under the headline "MTN in hostile takeover of Mascom' is untrue and baseless." the company said in a statement.
A local government employees pension fund that owns a large stake in the mobile network also confirmed that it had no plans to sell its stake.
MTN originally bought a 44% stake in Mascom Wireless in November 2005 for approximately USD125 million. It at some point in the next couple of years rose to 51%.
In 2007 the company said it was lifting its stake from 51% to 53 percent, although the company accounts for 2009 and 2010 show it stood at 55%, and since 2011, it has been recorded at the current 53% stake.