Mabeo Explains IPO Launch Postponement

| April 8, 2015

Botswana Telecommunications Corporation Limited (BTCL) first listing in the local stock market, referred to as Initial Public Offering (IPO) was postponed to enable the company to raise funds for the underwriting arrangements.

Responding to a parliamentary question, Minister of Transport and Communications, Mr Tshenolo Mabeo said it was further intended that the postponement would give Batswana ample time to raise capital to effectively participate in the purchase of the BTCL shares.

“The postponement of the IPO launch will not only attract additional legal fees but additional transactional aisory services,” he said. The minister said this was because some of the activities would have to be redone or updated.

He said the legal due diligence would have to be upgraded, financial due diligence, enterprise valuation and various sections of the prospectus have to be redone and the consortium’s project management services are also required to manage the above activities.

Mr Mabeo also said the final Possession and Use Agreement between BTCL and Botswana Fibre networks (BoFiNet) was signed on March 4, 2015.

He said the Possession and Use Agreement was scheduled to be signed on November 30, last year, but the BTCL transaction aisors, Collins Newman and Deloitte Consortium, aised that the November 4 version was not fit for the purpose.

A further work was therefore undertaken to enhance the agreement to the aisors’ satisfaction, he added.

Minister Mabeo was answering a question from the MP for Gabane-Mmankgodi, Major General Pius Mokgware who had asked whether the November 4, 2014 version of the Possession and Use Agreement had been signed.

MP Mokgware also wanted the minister to state if the BTCL IPO had been launched as at 31 December 2014 as was planned and if the postponement would attract extra legal fees.

Source : BOPA

Source : Botswana Daily News

Category: Business & Finance

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