The Government Institutions Pension Fund (GIPF) says it is consulting the Mobile Telecommunications (MTC) Limited regarding board representation in the country’s telecoms company.
The country’s largest pension fund’s consultations follow its acquisition of a 28% stake in MTC.
Former Chief Executive Officer of GIPF, David Nujoma, emphasised that the discussions are in progress and highlighted the continuous efforts to align GIPF with MTC’s governance structures and requirements.
“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.
Furthermore, Nujoma noted that GIPF is ready to bolster its current 28% stake in MTC, if the opportunity arises, supported by a recommendation from its asset managers.
Meanwhile, Namibian Post and Telecom Holdings Ltd (NPTH) indicated that it is yet to decide what to do with the remaining 9% shares it holds after the listing of MTC.
“Yes, we continue to assess the situation since it’s in the open market. We have not made a call yet and we’ll assess in terms of our single obligation, also in terms of being exposed to one single entity. As the assets of the Fund grow, it becomes perhaps palatable,” said Nujoma.
The GIPF’s move to acquire a substantial stake in MTC underscores the fund’s dedication to supporting essential services, such as telecommunications, which have become integral to modern society.
Nujoma highlighted the significance of investing in strategic assets that align with the fund’s long-term growth projections.
Nujoma also addressed the topic of private assets, acknowledging the GIPF’s deliberate efforts to maintain control over key assets.
“We have deliberated or deliberately introduced the private equity component precisely just to do that, with various fund managers having mandates, specified mandates, to go out there in the market and search for opportunities,” he explained.
He highlighted MTC’s exemplary governance and transparency, acknowledging the company’s willingness to collaborate and share insights into its operations.
“MTC, I must say, has been doing an excellent job in terms of its governance, and they have been very transparent with us. They took us in confidence in what they see in the future, the technologies that they would like to introduce and the developments thereof. These are the things that give you that comfort that here I’m in good company,” he added.
This comes after 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.
