Allied Technologies (Altech) CEO Craig Venter announced on Monday that the JSE Securities Exchange-listed company has $100-million “at the ready” and could willingly buy, within 48 hours, the remaining 50% that the Econet Wireless group holds in Econet Wireless Global (AEW).
AEW is jointly owned by Altech and Econet. The two companies are involved in a battle for control of the Botswana-based cellular joint venture following the irreparable breakdown of the partners’ relationship.
“As far as Altech is concerned, the situation is clear,” said Venter.
“A court of law, based in Botswana, will decide who is a buyer or a seller, at $100-million, for the remaining 50% of the equity. [Econet CEO] Strive Masiyiwa has been quoted as saying that Altech has ‘sinister motives’ in bringing the matter to court.
“I say that such a move is fair and reasonable and in the interests of all stakeholders. In arriving at the $100-million valuation, Altech took external merchant-banking advice.”
Venter added that Altech invested $70-million for its 50% in AEW last December, but highlighted that the valuations were concluded and verified long before that date.
“In light of this, one needs to acknowledge that there has been significant growth by cellular operators on the African continent during this period and, more specifically, it is well recognised that cellular-network valuations over the past year have increased significantly,” he argued.
“The valuation of $100-million is based primarily on the underlying growth in Mascom [Botswana] and Vee Mobile [Nigeria], neither of which are managed by Econet.”
He said Altech is committed to good corporate governance, noting that the partners have the duty to explore all opportunities as long as they could benefit the shareholders of AEW and add value to the joint venture, whose presence spans Botswana, Nigeria, New Zealand and the United Kingdom.
Altech has the highest of standards regarding good corporate governance and professionalism, and is committed to delivering shareholder wealth.
“These are issues on which Altech refuses to compromise,” Venter said.
The listed company continues to enjoy extensive relationships with many companies, such as Vodacom, MTN and Cell C — “specifically, Autopage Cellular with all three networks, NamITech with all three networks, and Isis with its enhanced software designs for Vodacom and Telkom”. — I-Net Bridge