Connect with us

Hi, what are you looking for?

Business

Liquid Telecom to buy back shares from BPC

Liquid Telecom to buy back shares from BPC
DIRECTOR OF LIQUID TELECOM HOLDINGS: Strive Masiyiwa

The Competition and Consumer Authority has given Liquid Telecommunications Holdings (LTH) the green light to acquire the 42.5 percent shares currently held by Botswana Power Corporation (BPC) in Liquid Telecom Botswana.

In 2016, Liquid Telecom Holdings entered into a joint agreement with BPC in a venture known as Liquid Telecom Botswana (LTB).

The arrangement was that BPC would lease its excess optical fibres from its network to Liquid Telecom.

BPC acquired the 42.5 percent stake in Liquid Telecom under the Indefeasible Right of Use Agreement (IRUA). Instead of taking rentals, the capital value IRUA was used to buy BPC’s equity stake while Liquid Telecom retained a controlling 57.5 percent stake.

LTB operates as a telecommunications and technology provider, offering products such as wholesale international bandwidth to the fixed-line operator, being Botswana Telecommunications Corporation Limited (BTC), mobile network operators and Internet service providers.

Advertisement. Scroll to continue reading.

Last month, Liquid Telecom Holdings, whose directors include Zimbabwean businessman, Strive Masiyiwa, alerted the Competition and Consumer Authority of its desire to acquire the shares held by BPC.

After carefully assessing the transaction, Competition and Consumer Authority, Chief Executive Officer, Tebelelo Pule says the assessment revealed the parties do not compete in the same product market.

“LTH operates in the digital and media communications market while BPC operates in the electrical power generation market,” said Pule.

Additionally, she noted that the assessment of the acquisition did not reveal any geographical overlaps because LTH has not yet commenced its core operations in Botswana.

Regarding competitive analysis, Pule says the Authority determined there would be no substantial lessening of competition concerns due to the absence of product and geographical overlaps in the activities of the merging parties.

In deciding on the proposed transaction, the Authority also looked into the issue of public interest. In this regard, Pule said the Authority’s assessment revealed the acquisition is expected to create employment, with the transaction also likely to allow LTB to improve the skills of its employees through leveraging of LTH’s global expertise.

Advertisement. Scroll to continue reading.

1 Comment

1 Comment

  1. Pingback: Liquid Telecom to take full control of Botswana subsidiary - Techzim

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Advertisement
Advertisement

You May Also Like

News

A family in Hukuntsi watched helplessly as P18,000 worth of lobola cash was reduced to ashes after their house caught fire last Tuesday night....

News

*Will it be Lesaso, Letsholo or Moabi

News

A Mosetse village man appeared before a Francistown Magistrate Court last week on a single count of threat to kill. According to the charge...

Sports

...As Mapantsola Cruise to 3-1 Victory Over Fighters

Entertainment

A romantic get away for olympic medalist Nijel Amos turned out to be a possible worst nightmare for one of the fastest man on...

News

Festive ended with fireworks for a married couple in Gamodubu village last Sunday. Sadly it was not the type that light up the sky...

Entertainment

Local riders will once again miss the opportunity to compete in the popular Toyota 1000 Desert Race since the event will be held in...

News

Police in Tutume are investigating a case in which a 25-year-old man allegedly set ablaze his girlfriend’s hut. The incident happened last week Wednesday...

Business

We start the year by featuring Tumelo Pabalinga, the Executive Director of Emergency Assist 991 – previously known as Netcare 991. The Sebina native...

News

A report by Psychiatric Out-patient Disorder Consultations indicates that more men in Botswana are prone to mental illness than women. Of the close to...

News

WOMAN’S HEARTBREAK FOR SON’S GIRLFRIEND KILLED IN CAR CRASH A devastated mother-in-law to be, Keabonye Ntsabane, has paid tribute to her son’s girlfriend who...

Entertainment

The second annual Botsalano Cup, an initiative by area Councilor Ontiretse Zuma Baakile is on the cards. The event will be preceded by an...

News

Francistowners reveal their dreams for 2022 For many, the dawn of a new year is seen as a chance for a fresh start, an...

Entertainment

Bringing peace to troubled minds After 37 years of dedicated service, last April Mmatlhapi Monowe retired from her government job as a psychiatric nurse....

Politics

A peep into a ‘Dry’ Backbench During the festive holidays, another prominent member of the ruling Botswana Democratic Party (BDP), Mpho Balopi resigned from...

Business

Pressure mounts on household incomes Economists have warned that the December increase in fuel prices will heap further pressure on already strained household incomes....

Advertisement

Copyright © TheVoiceBW. (Since1993) made with ❤️ in Botswana.