The Ministry of Information and Communicat ions Technology (ICT) says government has re-acquired 80 percent stake of Ma lawi Telecommunications Limited (MTL) from conglomerate Press Corporation Limited (PCL) plc at K9.2 billion.
Secretary for ICT Harold Msusa confirmed the development in an interview yesterday.
He said: “I should confirm that, indeed, the government has owned back MTL through a deal whose transaction amounted to K9.2 billion.
“The government will now own a major share of 80 percent while the other 20 percent remains with PCL.”
Ms u s a , h owe v e r , s a i d government is yet to take over the telecommunications company as final stages are still underway.
“We plan to brief the Cabinet on this development and MTL’s new profit-making strategies before we take control. The general public will possibly be notified as well,” he said.
Msusa said the new profit-making strategies government has set include restructuring the MTL governance, an intervention set to sustain the company’s turnover.
PCL corporate and public affairs manager Rehanna Rice said the Malawi Stock Exchange-listed conglomerate will communicate once all processes are finalised.
The acquisition of MTL comes against its record of underperformance and losses for over a decade. The company reported its first profit-after-tax of K1.04 billion last year.
Minority Shareholders Association of Listed Companies general secretary Frank Harawa said the development will not affect shareholders as they were already notified about the sale.
Meanwhile, economist Edward Chilima has said government should brace for huge costs in turning around MTL.
“Unless government revamps MTL business model, heavily invests in new technologies and overhauls its governance structure, this will drain government resources,” he warned.
Government privatised MTL to PCL in 2005 to a 52.7 percent stake.
