Liquid Telecommunications Holdings (LTH) will acquire 42.5 percent shares currently held by Botswana Power Corporation (BPC) in Liquid Telecom Botswana, the approval by The Competition and Consumer Authority can be traced back to 2016 when Liquid Telecom Holdings entered into a joint agreement with BPC in a venture known as Liquid Telecom Botswana (LTB)
At that time, BPC would lease its excess optical fibres from its network to Liquid Telecom.
BPC acquired the 42.5 percent stake in Liquid Telecom under the Indefeasible Right of Use Agreement (IRUA). Instead of taking rentals, the capital value IRUA was used to buy BPC’s equity stake while Liquid Telecom retained a controlling 57.5 percent stake.
LTB operates as a telecommunications and technology provider, offering products such as wholesale international bandwidth to the fixed-line operator, being Botswana Telecommunications Corporation Limited (BTC), mobile network operators and Internet service providers.
After Strive Masiyiwa alerted the Competition and Consumer Authority of his desire to acquire the shares held by BPC, the Chief Executive Officer, Tebelelo Pule says the assessment revealed the parties do not compete in the same product market.
LTH operates in the digital and media communications market while BPC operates in the electrical power generation market.Said Pule
In deciding on the proposed transaction, the Authority also looked into the issue of public interest. In this regard, Pule said the Authority’s assessment revealed the acquisition is expected to create employment, with the transaction also likely to allow LTB to improve the skills of its employees through leveraging of LTH’s global expertise.