Airtel Malawi Confirms Exclusion Of Mobile Money Service From IPO
Airtel Malawi has confirmed that its mobile money service was not included in the Initial Public Offer (IPO) which closed at the end of January 2020 because it is a different entity.
The public offer for Malawi’s largest mobile operator opened on 27 December 2019.
Airtel Malawi’s Managing Director Charles Kamoto explained that the business has two affiliates - Airtel Money, which was incorporated on 11 June 2009, and Malawi Towers Limited, which was incorporated on 15 December 2010.
Kamoto noted that these affiliates are separate entities as they were registered as such from the beginning, and could not be part of the offer.
He said that as the mobile operator pursues a light asset model strategy, the focus is primarily to invest in active infrastructure and divest from the passive infrastructure which had allowed them to sell 438 towers to Malawi Towers in 2014 and remain with only 90 in 2019.
Dalitso Kabambe, the Reserve Bank Governor, said that the listing of Airtel Malawi falls in line with Section 35 of Malawi’s Communications Act 2016 which states that an Electronic Communications Licensee should maintain a local shareholding of at least 20%.
Cerdit: This article originated from www.itwebafrica.com