MTC’s listing not untoward – Shiimi
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WINDHOEK
Finance minister Iipumbu Shiimi says there is nothing untoward about the planned listing of telecommunications company MTC on the Namibia Stock Exchange (NSX), insisting rather that it will benefit the ordinary Namibian.
He made the comments in Parliament following remarks that government had lost its vision and strategy to run Namibia. This was in response to a question raised by Namibia Economic Freedom Fighters (NEEF) member of parliament, Kalimbo Iipumbu.
Shiimi drew parallels to China, where many public entities had been listed on the Shanghai and Shenzen Stock Exchanges.
“I disagree with your opinion that government has lost its vision and strategy to run the country. In fact, I believe that the opposite is true in that you are, in fact, seeing a progressive, creative approach to mitigate immediate challenges,” Shiimi said.
“An interesting fact is that China, which is still largely regarded as a socialist country, has listed more than 1 000 state-owned enterprises on the Shanghai and Shenzhen Stock Exchanges,” he added.
Despite MTC’s planned listing on the NSX, Shiimi noted that government would still be able to receive dividends from the company through its 51% shareholding it would hold after the listing goes live on 19 November.
“Once listed, government’s 51% shareholding will appreciate in value if the share price of MTC increases on the NSX over time,” Shiimi added.
Unlocking maximum value
The planned listing would further unlock maximum shareholder value and cashflow for government, he said.
“The proceeds from this listing will greatly enhance the ability of Treasury to meet the various demands and to apply funds according to appropriate priorities. The money will also provide an alternative to counter potential additional borrowing requirements and subsequent high debt levels,” Shiimi said.
It is anticipated that government will make approximately N$3.12 billion from the sale of its 49% stake in the telecommunications company. It will also become the first public entity to be listed. MTC shares are prized at N$8.50 per share and interested parties can acquire minimal shareholding for as little as 200 shares, or N$1 700.
WINDHOEK
Finance minister Iipumbu Shiimi says there is nothing untoward about the planned listing of telecommunications company MTC on the Namibia Stock Exchange (NSX), insisting rather that it will benefit the ordinary Namibian.
He made the comments in Parliament following remarks that government had lost its vision and strategy to run Namibia. This was in response to a question raised by Namibia Economic Freedom Fighters (NEEF) member of parliament, Kalimbo Iipumbu.
Shiimi drew parallels to China, where many public entities had been listed on the Shanghai and Shenzen Stock Exchanges.
“I disagree with your opinion that government has lost its vision and strategy to run the country. In fact, I believe that the opposite is true in that you are, in fact, seeing a progressive, creative approach to mitigate immediate challenges,” Shiimi said.
“An interesting fact is that China, which is still largely regarded as a socialist country, has listed more than 1 000 state-owned enterprises on the Shanghai and Shenzhen Stock Exchanges,” he added.
Despite MTC’s planned listing on the NSX, Shiimi noted that government would still be able to receive dividends from the company through its 51% shareholding it would hold after the listing goes live on 19 November.
“Once listed, government’s 51% shareholding will appreciate in value if the share price of MTC increases on the NSX over time,” Shiimi added.
Unlocking maximum value
The planned listing would further unlock maximum shareholder value and cashflow for government, he said.
“The proceeds from this listing will greatly enhance the ability of Treasury to meet the various demands and to apply funds according to appropriate priorities. The money will also provide an alternative to counter potential additional borrowing requirements and subsequent high debt levels,” Shiimi said.
It is anticipated that government will make approximately N$3.12 billion from the sale of its 49% stake in the telecommunications company. It will also become the first public entity to be listed. MTC shares are prized at N$8.50 per share and interested parties can acquire minimal shareholding for as little as 200 shares, or N$1 700.
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