State-owned telecom companies convene creditors to discuss merger – Mozambique

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State-owned telecom companies convene creditors to discuss merger – Mozambique

1:16 CAT | 18 Oct 2018

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State-owned companies Mozambique Cellular (Mcel) and Telecommunications of Mozambique (TDM), which the government intends to merge, have today issued notices inviting creditors to a meeting.

The invitations appear side by side in the state newspaper Noticias, the country’s main daily newspaper, and refer to the ongoing “merger process”. The companies invite “creditors and other entities with rights that should be protected during this process for a meeting” in Maputo on October 24.

Minister of Transport and Communications Carlos Mesquita said in August that the board of directors of the two companies have until the end of the year to submit a proposal for a merger, which has already begun in some aspects.

Mahomed Rafique Jusob was appointed about a year ago as the new chairman of a unified board of directors with the goal of merging the two firms, as announced by the government in 2016.

The measure is part of the restructuring of the state business sector in the face of the difficult financial situation which most Mozambican public companies find themselves in.

The International Monetary Fund (IMF) has said the Mozambican government needs to revise its portfolio of holdings and shares as part of measures to control the public deficit.

The meeting is scheduled for 9:00 a.m. on Wednesday, October 24, at the Mozambican Telecommunications Training Institute.

Source: Lusa