FRANCISTOWN: The privatisation of the Botswana Telecommunications Corporation (BTC) has received a boost with the ironing out of a technicality that experts had warned would block an Initial Public.Offer and the listing of shares on the Botswana Stock Exchange (BSE). Under the BTC's privatisation model, the former parastatal's backbone infrastructure will be removed and held under a separate government-owned entity, while BTC property will be privatised.
Government will retain 51 percent of shares, while workers will be offered five percent and the balance offered to citizens via an Initial Public Offer (IPO). The shares will then be listed on the Botswana Stock Exchange with government remaining as the sole buyer of shares when holders decide to dispose.Experts had pointed out that this last condition would prevent a listing on the BSE as the bourse requires free tradability of shares, regardless of nationality. In addition, government's position as sole buyer was seen by experts as a hindrance to the price discovery which results from the unfettered buying and selling of shares on the BSE.
