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BTCL IPO postponed


The sale of Botswana Telecommunications Corporation Limited shares did not go on sale on Thursday this as planned.


The date for the Initial Public Offer for the much awaited BTCL shares has been moved up, the Ministry Of Minerals Transport and Communications announced this week.


The Ministry had intended to launch the IPO on 7th November but this has since been postponed to an unspecified date but not later than 31, December, 2014. Furthermore, as an added measure, the period of offer will also be open for a period of up to 8 weeks.


This postponement comes after the initial postponement from the August 2014 to November 7 date, that was initially set for the listing of the BTCL shares.


This moved was decided upon after prospective buyers, at various awareness Pitso held recently in Francistown and Gaborone, expressed their need for more time to mobilise fund to buy into the Company.


The Corporation said in a statement released on Tuesday this week, explaining the delay that: “Two key issues, however, have been raised repeatedly in these fora which we believe we need to address. Firstly, the audiences, especially amongst the individual citizens, indicated that they had limited understanding of an IPO as well as how one can participate and benefit from it. Secondly, they requested for ample time to organise funding that they would use to purchase the shares with, in essence, that the current IPO date was too close.”


The launch of the IPO had initially been slated for August 2014 but was moved to


The sale of the BTCL shares has been touted as a great investment instrument open to citizens


The Initial Public Offering (IPO) will see Government offering 49 percent of the shares on the BSE of which five percent has been reserved for BTCL employees through an Employee Share Ownership Programme (ESOP). Government will retain the remaining 51 percent. Citizens who buys and hold shares for foreigners stand to lose their investment amount if discovered by the Corporation.


In the financial year 2012/13, BTCL revenues surged past the billion pula mark to stand at P 1.375 billion compared to P 1.187 billion recorded in the 2011/12 financial period.


Profit before tax increased by 20 percent from P237 million recorded in 2011/12 to P284 million in 2012/13 with net profit margin growing to 21 percent from 20 percent in the previous year.  

Answering concerns that BTCL had literally handed over assets to BoFiNet (Botswana Fibre Networks), Taylor said it is net cash-flows that make the company viable.

The hiving off of Bofinet from BTCL came with the backbone infrastructure worth P1.4 billion. The assets include the Dense Wavelength Division Multiplexing (DWDM) designed to use the national fibre networks (EASSY and WACS) to their fullest potential.


The company is said to be very viable, with potential for better revenues from, convergences, data and improved efficiencies, despite the assets handover to BoFiNet.


Be Mobile, the mobile telephony wing of BTCL, currently has over 300 000 users, while BTC’s traditional fixed line business has over 200 000 voice ports. With increased penetration in the mobile division, it is expected that the fixed line phone numbers to remain stable while the mobile business would grow.
 

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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