The Government Institutions Pension Fund (GIPF) says it is ready to bolster its current 28% stake in Mobile Telecommunications Limited (MTC), if the opportunity arises, supported by a recommendation from its asset managers.
This comes after the Namibian Post and Telecom Holdings Ltd (NPTH) indicated it is yet to decide what to do with the remaining 9% shares it holds after the listing of MTC.
“We are an active member of the investment community in Namibia, and if new opportunities arise, MTC or any other, we will of course look at it in the context of our appetite, including the issue of concentration risk.” GIPF Chief Executive Officer David Nujoma told The Brief.
“We have active asset managers who are scoping the market at all times. Therefore, if they deem it appropriate to acquire more shares, it’s in the hands of their good judgment.”
Regarding seats on the telco board, where its General Manager: Operations, Elvis Nashilongo, is a board member and previously served as its board chairperson, Nujoma said the pension fund was still consulting with MTC on how to proceed with the issue.
“We will review, in the context of the company’s requirements, and respect their own procedures and policies regarding director source. In most investments where we have significant shareholding, such as the First National Bank and Bank Windhoek, we have representation. So, it’s an issue that we will engage with MTC,” he said.
The fund emerged with a combined 28% stake in MTC following Telco’s initial public offering (IPO) and subsequent listing on the Namibian Stock Exchange last November.
The fund paid more than N$874 million for the shareholding based on the N$8.50 share price, making it the second largest single shareholder in MTC after NPTH, whose stake increased to 60% post the IPO after some shares were not taken up.
GIPF initially applied for a direct 25% stake in the mobile company during the IPO, which was granted, and received an additional 3% shareholding through the Namibia Asset Management, giving it a total shareholding of 28%.
GIPF was one of the institutional investors who pre-committed to purchase a minimum of 282 899 160 shares worth N$2,4 billion at an IPO price of N$8.50.
MTC raised N$2.541 billion from the IPO, which is now Namibia’s largest.
