A Botswana court will decide who is a buyer or a seller, at $100 million, for half of the Econet Wireless Global (EWG) stake, says Altech CEO Craig Venter.
In a statement released this week, Altech responds to comments made by Econet to the media last Thursday regarding Altech`s application with the Botswana high court for the winding down of EWG, a joint venture with the Econet Wireless Group.
Econet Group CEO Strive Masiyiwa was quoted in the media as saying the company`s EWG stake was not for sale, at any cost. Masiyiwa also questioned Altech`s valuation of its stake at $100 million and suggested that parties appoint an external valuator and settle the issue amicably.
However, Venter says Altech did take external merchant banking advice to reach the $100 million value. He also says it is well recognised that network valuations over the past year have increased significantly. He says the $100 million is based primarily on the underlying growth in Mascon (Botswana) and Vee Mobile (Nigeria).
Venter also attributes the valuation to the projected growth of the African cellular subscriber market, which Yankee Group predicts will increase from the current 2% penetration levels to 13% over the next four years.
Altech`s statement also addresses some of the issues covered by the shareholder agreement.
Venter says Altech never indicated before the joint venture or at present that it would not pursue any opportunities with any partners or operators such as Vodacom. In fact, he says, Altech has not only the right, but also the duty together with Econet to explore all opportunities as long as they benefit shareholders and add value to the joint venture.
He says it has been Altech`s strategy from the beginning of the joint venture to elevate itself up the value chain into high growth areas of cellular activities.
This is contrary to Econet`s understanding of the agreement. According to Masiyiwa, the EWG joint venture was formed with the understanding that both parties would have to agree to any partnerships formed by EWG with other operators. Masiyiwa also says the partnership was formed with the clear understanding that the Econet Group would manage the joint venture with him at the helm.
Venter emphasises that Altech has significant experience in managing cellular subscribers. For example, Autopage Cellular, within the Altech Group, has in excess of 650 000 cellular subscribers. This is more than the entire subscriber base of the EWG, he says.
With regard to the racist remarks allegedly made by an employee seconded by Altech to the EWG, Venter says he does not, and never will, condone any form of racism.
"As CEO of Altech, I will continue to take the strongest action necessary to ensure this philosophy is adhered to."
Venter also emphasises that the current lawful procedure will be consistent with the legally binding shareholder agreement. He also says this extremely important issue was made known to Altech six months after it allegedly took place and questions the timing of it being made public.
The hearing in the high court on Altech`s application to prevent Masiyiwa from proceeding with an independent inquiry will be held tomorrow.
Econet says it will release a statement on the matter later today.
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