Malawi: TNM plans to diversify through ISP acquisition

Mergers, Acquisitions and Financial Results

Telekom Networks Malawi (TNM), the country’s second largest mobile operator by subscribers, has revealed in an announcement on its website that it is currently involved in negotiations to acquire the internet service provider (ISP) business and related assets of Burco Electronic Systems, subject to the completion of applicable regulatory reviews and approvals. TNM said it believes that the acquisition would enable it to establish and deliver a broad range of telecoms services to its business customers, as well as provide enhanced services to Burco’s existing subscribers. TNM, which holds a Universal Licence allowing it provide all types of telecoms services, plans to use the assets to establish a new unit, known as TNM Business Services Division.

TNM claims that the planned acquisition of the Burco assets will represent only a small portion of its USD25 million infrastructure investment budget for 2014. ‘Although the transaction will not be significant in the context of the overall TNM infrastructure investments, the outcome of these negotiations may affect the future share price … shareholders are therefore advised accordingly to exercise caution in dealing in their shares in the company until a further announcement is made,’ the statement said. The mobile operator has submitted the required application to the Competition and Fair Trading Commission (CFTC) and has informed the Malawi Communications Regulatory Authority (MACRA) and the Malawi Stock Exchange (MSE) of the developments.

Source: Telegeography 20 November 2014