MTN Group positioning self for competition

With LAP Green expected to officially launch its operations and effectively bring ing competition in the local telecommunication industry, the main operator MTN Rwanda, is seeking to consolidate its operations in the country.Dogged by failures in delivering good quality communication services for the last few months, MTN is reportedly panicky that such a state of affairs might undo the competitive edge it had built over the years. MTN Group, which recently increased their shares in their Rwandan subsidiary from 40 percent to 55 percent after it bought a 15 percent stake from Tristar Investments, was recently involved in a countrywide promotional campaign. Tristar Investments, a local firm, was until the aforementioned deal holding 50 percent of MTN Rwanda since 1998 when the mobile service giant opened shop in Kigali. Ephraim Turahirwa, MTN Rwanda board chairman and also Managing Director of Tristar Investment, said that the sell was a continuous process. We are still in negotiations, and it’s not just the 15 percent. MTN Group need majority shares wherever they operate to consolidate their business position, he said. He said when MTN Group began operations in Rwanda, they were not very confident of investing in the country alone; they needed partners but now that there’s stability they want to have consolidate themselves. Turahirwa said MTN had initially invested 26 percent following the 1994 Genocide in Rwanda. However their confidence in the Rwandan economy increased and so they want to buy out all shareholders. He said that the Government through Rwandatel owns 10 percent of the company which they will also sell because, with the arrival of competitors such as Lap Green, MTN needs to consolidate their position. Turahirwa said that Tristar was willing to let go of all its shareholding in the communication group, adding that negotiations between both parties were going on. There’s no specific number of shares we intend to sell to MTN Group in the near future, but we are still negotiating with them. If they give us the right offer for all our shares, we are willing to sell to them completely and we invest our money in other sectors of the economy. MTN Chief Operations Officer Andrew Rugege declined to comment on the development, saying that shareholders are business-oriented people. They will do business transactions when the right offer comes but we as management cannot comment on their transactions. Turahirwa said that by selling their shares to MTN Group, Tristar Investments would now turn its focus to other sectors such as construction, one of the sectors currently booming sectors.on boom. When we sell our shares to MTN Group, we will benefit from increasing capital share and invest in other sectors of the economy; we will continue negotiating with them, Turahirwa said. Pearl Mazola, the MTN Group Public Relations Officer said in an email that the company was successful in Rwanda, registering a total 576, 000 subscribers by September 2007. Meanwhile, MTN Rwanda is organizing planning to hold grand ceremonies to celebrate their 10th anniversary. Rugege said: Turning 10 years is a big achievement and we are planning appropriate ceremonies to celebrate with our clients,. Rugege said. Ends

National

MTN Group positioning self for competition