Two Consortium representative Michael Nahon says Two Consortium has not changed terms of its bid for a 51% equity stake in the second national operator (SNO), but has merely indicated that it can raise additional capital if necessary.
This follows reports that the consortium had increased its equity stake from R220 million to R362 million, which would give it the scope to negotiate the purchase of Transtel`s full service network (FSN).
Unofficial comments from industry players suggested that Two Consortium was effectively "trying to get the teacher to change the marks after the exam has been written".
Nahon rejects these views, saying Two Consortium has never been litigious in its approach. "We weren`t changing our plan, we were simply answering questions ICASA put to us. We don`t want litigation, want a second national operator, and we want to see it decided this month. Win, lose or draw, we will accept the final result," he says.
Nahon reiterated his statement that the company was not attempting to change its best and final offer (BFO), but - along with its answers to questions the regulator asked for clarity on at the recent public hearings - it had included letters of commitment showing that it had the ability to up its equity stake.
Two Consortium told the Independent Communications Authority of SA (ICASA) that it could supply two guarantees - R50 million to comply with the terms and conditions of the licence and a second R50 million to say the consortium could fund equity contributions.
"In response to questions about whether we could raise more, we got letters from Absa, Mvelaphanda, Telenor and SwedTel AV saying we can fund the equity requirement in the BFO plus put in the additional capital," he says.
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