NBFIRA clears BPOPF's push for bigger Mascom stake

The reported approval is a blow to Strive Masiyiwa’s P3 billion bid to increase his firm’s own stake in Mascom from the current seven percent to 60%. Masiyiwa, through his Econet holding group, had planned to up his stake by buying out MTN which presently holds 53% in Mascom. The deal, MTN confirmed, was valued at US$300 million. Masiyiwa, a Zimbabwe-born billionaire, founded Mascom 21 years ago, using the fledgling company to build up a telecommunications empire spanning across the continent.

This week, insiders close to the latest developments said NBFIRA had instead approved a request by the pension fund to increase its holdings in Mascom. Under current rules, NBFIRA sets limits on how much exposure a pension fund can make in a single investment, as part of risk management protocols.  The BPOPF, which has resisted the Masiyiwa/MTN deal from the time it was first announced in March, recently identified a loophole allowing the pension fund to pursue a “forced sale” of MTN shares representing 20% of Mascom. The deal, when concluded, would give the BPOPF 60% stake and control of Mascom, leaving Econet and MTN with the balance.