State-owned telco allowed more time to list on Dar Stock Exchange
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TTCL said it was advised by the Capital Markets and Securities Authority (CMSA) to restructure its operations after the government took full control of the company six months ago upon acquiring a 35 per cent stake from Bharti Airtel.
State-owned Tanzania Telecommunications Company Ltd (TTCL) has been allowed more time to list on the Dar es Salaam Stock Exchange, as almost 90 other firms face withdrawal of their licences after they failed to meet a turn-of-the-year ultimatum to present their flotation documents.
TTCL said it was advised by the Capital Markets and Securities Authority (CMSA) to restructure its operations after the government took full control of the company six months ago upon acquiring a 35 per cent stake from Bharti Airtel.
“We cannot be categorised as late in listing because we are restructuring ourselves, and yet we are in communication with the CMSA who advised us on what to do to be eligible for listing,” said TTCL public relations manager Nicodemus Mushi.
Mr Mushi did not disclose details of the pending structural changes, but information from other sources indicated that a new board would be constituted.
TTCL was established in 1994, after the dissolution of the government-owned Tanzania Posts and Telecommunications Corporation.
In 2001, the government signed a Share Subscription Agreement — retaining 65 per cent of the shares — with a consortium of Detecon of Germany and Mobile Systems International Cellular Investments Holdings BV (MSI) of Netherlands, who obtained 35 per cent of shares. The government’s partners in TTCL later changed their name to Celtel and later to Bharti Airtel.
Last June, President John Magufuli’s government signed a Share Transfer Agreement that dissolved the partnership, after the government bought back the 35 per cent stake.
Meanwhile, Zantel and Halotel, which also failed to initiate the listing process by the stipulated deadline, refrained from making their positions on mandatory listing public.
Zantel public relations manager Rukia Mtingwa said, “The listing issues are being deliberated on within our management and board. I can’t comment. We will issue a press release once our internal deliberations are over.”
Halotel is the brand name of Viettel Tanzania Ltd, a member of the Viettel Group, the biggest telecoms group in Vietnam.
Tanzania Communications Regulatory Authority (TCRA) said they are waiting for the official list from CMSA of telcos that have not met the requirement, so that they can take punitive measures against offenders.
TCRA Director-General James Kilaba said when his office gets the names of companies that have failed to list on the Dar bourse, they could deregister them.
Mr Kilaba said he has already submitted the 89 companies that they regulate to CMSA for the latter to determine the ones that qualify for listing on the DSE.
“Once we get the feedback, we will take action against all companies deemed as qualifying but who have not initiated the listing process on DSE,” he said.
Other than phone companies, other firms under the regulation of TCRA include radio and TV stations, importers and distributors of electronics equipment, network service providers, and courier service providers, among others.
