MTN Business Namibia's managing director Manfred Engling said the company had invited local investors to purchase a 30 per cent stake in the operator as part of its licensing terms, rather than a need to raise cash.
The operator, a subsidiary of South Africa-based MTN, invited Namibian investors to submit letters of intent regarding the 30 per cent stake, which the company is obliged to sell as part of the terms of an Internet Service Provider licence awarded to it in 2014, The Namibian reported.
Engling told the newspaper that MTN Business Namibia has yet to establish a value for the stake, but noted that the sale is not motivated by a need to raise cash. Instead, the sale will bring in investors that can add value to the operators' services and help the company to grow, the newspaper added.
Interested parties have until Apr. 20 to submit letters of intent, at which point MTN Business Namibia will establish a value for the stake.
Namibia's government originally called for MTN Namibia to sell a 51 per cent stake, but Engling said the requirement was later reduced to 30 per cent, PC Tech Magazine reported.
Operators in the African country are increasingly eyeing the provision of bundled fixed and mobile services, The Namibian stated, noting that rivals Telecom Namibia and MTC are gearing up to straddle the two worlds.
Engling told the newspaper that the operator aims to break Telecom Namibia's dominance of the market. The latter has been stymied in its attempts to grow its infrastructure by low cash flow in its fixed-line business, The Namibian explained.
The move by MTN Business Namibia comes a matter of days after parent MTN was reported to be in talks to acquire Nigerian fixed and mobile operator Visafone, a move that would strengthen the company's presence in the country.
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