By Benadetta Chiwanda Mia:
Press Corporation Limited (PCL) plc has announced that it is in negotiations to potentially sell its entire 52.7 percent shareholding in Malawi Telecommunications Limited (MTL).
In a cautionary statement issued by company secretary Moureen Mbeye, PCL plc hints at the possibility of the negotiations influencing the share price of PCL plc.
“Shareholders are advised to exercise caution and consult their professional advisers before dealing in PCL shares until a full announcement is made on the outcome of the negotiations,” the statement reads.
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PCL plc Corporate and Public Affairs Manager Rehanna Rice described the move as part of a strategic re-organisation of the company’s presence in the telecommunications sector.
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“The company is focusing on strengthening and consolidating its investments in other key areas, such as Telekom Networks Malawi (TNM). This decision aligns with our long-term vision of optimising our investment portfolio,” Rice said.
Rice added that the exact value of the transaction would be determined by the outcome of the negotiations.
“Press Corporation remains committed to securing optimal value for its shareholders,” she said.
Capital market analyst Kondwani Makwakwa commented on the development, describing it as a strategic decision by PCL, noting that MTL has been experiencing financial difficulties that had adversely affected the group’s overall profitability.
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“Redirecting resources into a more profitable venture is a prudent move that can enhance shareholder returns and strengthen the group’s financial position,” Makwakwa said.
MTL, a limited company registered in 2000, was privatised in 2005 to access more financial and technical resources.
It is owned by Telecom Holdings Limited (THL), which holds 80 percent of the shares, while the Malawi Government retains 20 percent.
THL is a consortium of Press Corporation plc, as the majority shareholder, along with Old Mutual, Nico Holdings and Investments Alliance Limited.
