A black economic empowerment (BEE) consortium of small and medium enterprises (SMEs), led by Digital IQ, has lodged an expression of interest to bid for 30% voting shares in Swiftnet, a wholly-owned subsidiary of Telkom.
Earlier this month, Telkom issued an invitation for potential investors to bid for the stake.
Lee-Ann Cassie, a telecoms enforcement manager with the Independent Communications Authority of SA (ICASA), notes that Swiftnet`s wireless data licence requires that a BEE partner hold a minimum of 30% of its shareholding. Swiftnet has been unable to fulfil this requirement since 2001, since Telkom purchased a 40% stake in the company that was previously held by VHR Wireless.
Third time lucky?
This round of bidding follows two failed attempts which ICASA attributed to a dearth of offers from credible investors.
Tebogo Khaas, Digital IQ CEO and president of the SMME Forum, says the 17-member consortium consists mainly of black-owned SMEs spread throughout the country.
"Our plan is that 70% of the 30% Swiftnet voting shares should be in the hands of SMEs, while the remaining share should be in the hands of individual investors and other entities," he says.
Greater ambitions
Khaas says the consortium has ambitions to acquire up to 49% shares in Swiftnet, if conditions permit and Swiftnet warms up to the idea.
He says the consortium has secured support from a leading financial institution. A corporate finance organisation has also expressed interest in providing funding should the consortium so require.
He adds that, while subscriptions to the consortium have been overwhelming, it has kept a window open until 31 July for further subscription by qualifying entities.
Swiftnet`s transaction advisor, Nedbank Capital, was unable to respond to queries at the time of publication.
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