Windhoek — Telecom Namibia on Wednesday announced the Communication Regulatory Authority of Namibia (CRAN) has formally cleared the company's completed acquisition of Powercom (Pty) Ltd, trading as Leo, the country's second mobile operator.
The transaction was already approved by the Namibia Competition Commission (NaCC) on April 27 this year.
CRAN's approval marks the final approval required for Telecom Namibia's overall transaction with Guinea Fowl Investments Two (Pty) Ltd to acquire 100 per cent equity stake in Powercom (Pty) Ltd, effectively placing Leo under the full control of Telecom Namibia.
Commenting on the development, Frans Ndoroma, MD of Telecom Namibia, said: "This is a milestone achievement for Telecom Namibia and it undoubtedly positions TN as a fully-fledged ICT service provider. We are indeed pleased to welcome Leo customers and staff to the Telecom Namibia family."
Ndoroma said that Telecom Namibia's acquisition of Leo would see mobile users across the country benefiting from increased investment in even better mobile services and new technology in the future.
"Our immediate focus from today will be on improving services, products, marketing, and network coverage to meet the needs of the Namibian market," he said.
"With Powercom (Pty) Ltd T/A Leo as part of the Telecom Namibia Group, it will serve as an active platform to introduce innovative fixed-mobile convergence (FMC) services and using the all-powerful Telecom Namibia infrastructure for back-hauling and transport capability," the MD added.
"I thank our shareholder for the confidence they placed in us, as well as our Minister of ICT, Hon. Joel Kaapanda for his unwavering support to us. I would like to extend my gratitude to the Board of Directors of Telecom Namibia, the management team as well as our employees and Union Executive who supported TN during the bidding for this acquisition. Last but not least, I thank Stanley Similo, in his capacity as Acting CEO, who managed to steer the company forward with all employees onboard, during these turbulent times," Ndoroma said at the takeover gathering.
Telecom Namibia's Chief Strategy Officer, Theo Klein, will assume the role of Interim Chief Executive Officer at Leo with immediate effect. He will report to the Board of Directors of the Company.
"I am very pleased to join Powercom (Pty) Ltd T/A Leo at this decisive moment in its development. The opportunities at the newly acquired entity are both exciting and challenging. Together with the company's solid management team and employees, we are looking forward to further establishing a strong platform and infrastructure that will enable us to deliver new products that complement Telecom Namibia's existing services," said Klein.
According to Telecom the acquisition of Leo represents a unique opportunity to gain full management control of a mobile business with growth potential.