Licence for second fixed-line operator
17 September 2004
Communications Minister Ivy Matsepe-Casaburri on Friday announced that she had granted a licence of the second national fixed line operator (SNO) to a consortium consisting of Nexus Connexion, Transtel, Esitel, and WIP Investments Nine, trading as Communitel and Two Telecom Consortium, to provide public switched telecommunications services.
The minister said a remaining 26 percent share must still be allocated.
The licence was granted on condition that the consortium finalised its business plan and shareholding structure, as well as the finalisation of shareholder and subscription agreements.
The ministry said in a statement that a new company, SEPco, will be incorporated and will hold 51 percent of the equity share capital of the SNO.
A new financial investor who will have a 51 percent shareholding in SEPco will hold control of SEPco.
Communitel and Two Telecom Consortium will each hold 24.5 percent of SEPco.
The telecoms arms of transport parastatal, Transnet and electricity utility Eskom - Transtel and Esitel - will together hold 30 percent of the equity share capital of the SNO.
Nexus will hold 19 percent of the equity share capital of the SNO.
The integration of the SNO company will be the responsibility of the entity's shareholders.
The minister added that she would finalise the process of selecting a suitable investor for the unallocated equity soon.
Source: Department of Communications website
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