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Of second chances, strange logic, share dealings and votes
US sanctions could give MTN a second crack at Ethiopian telecoms licence, CompCom confounds with Burger King decision, share dealings at Sibanye-Stillwater ⦠and it seems something is up at Mpact. 00:01
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It looks as though the apparently attractive Ethiopian telecommunications market might still be wide open for MTN.
Just over two weeks ago the Ethiopian government announced that the MTN-led consortium had failed to secure the first of two licences that were up for sale. The winning bid was led by the UKâs Vodafone and included Kenyaâs Safaricom, Sumitomo of Japan and, crucially, the Washington-based International Development Finance Corporation (DFC). MTNâs consortium included Chinaâs Silk Road Fund.
Who can forget the line, screamed by the Queen, “Off with her head! Off with…”
Or: “No, no!” said the Queen. “Sentence first – verdict afterwards.”
Writers and scholars have been trying to understand the meanings within Lewis Carroll’s fantastical work for 150 years, but for me the story was a powerful comment about the madness of power and government (and the wisdom of mere mortals).
The Competition Commission and its commissioner, Tembinkosi Bonakele, exhibited the twisted logic worthy of Wonderland this week when the commission ruled against the acquisition of Burger King by Emerging Capital Partners, a Pan-African private equity firm that has been investing across Africa for the past 20 years. The firm has raised more than $3.2-billion in growth capital through its funds and co-investment vehicles. We’d like them to come back.
9:05 am
Ina Opperman It is the first time in 20 years that a merger may be prohibited on the grounds of public interest only. Picture: iStock
The move by the Competition Commission to formally block the sale of Burger King and Grand Foods meat plant to Pan-African private equity firm Emerging Capital Partners (ECP) because “the proposed merger cannot be justified on substantial public interest grounds”, is bad news for investment.
The commission recommended the Competition Tribunal prohibits the sale because the merger would significantly reduce the shareholding of historically disadvantaged persons (HDP) from more than 68% to 0%.
Ground-breaking recommendation
This “ground-breaking recommendation”, to prohibit the proposed sale by Grand Parade Investments of its investment in Burger King SA to a US private equity firm, will have s
Merger parties need certainty on deal making, and the authorities should not harm the very interests they are required to protect and arguably promote.