[kictanet] Calling Rates - Airtel to de-list Celtel

[Andrea Bohnstedt]

It's Zambia, not Zimbabwe (as far as I know, Airtel have no operations in
Zimbabwe) and so far, the Lusaka stock exchange has objected to these plans.


The bottom line is, though, whether and under what circumstances a delisting
is possible in Zambia. It's irrelevant whether that's Airtel or anyone else.
The regulatory framework must treat all listed companies equally.

If Airtel delist, they will try to buy back the shares - an initially offer
has been rejected by the minority shareholders:
http://www.bloomberg.com/news/2010-12-30/minority-shareholders-may-stall-bharti-airtel-s-delisting-of-zambian-unit.html.
This article also tells you that Bharti now own 97% of the Zambian Airtel,
so there's hardly any mass retail share ownership and not that many 'common'
Zimbabweans (or rather Zambians) who 'benefit' from the listed company are
the shareholders and who have contributed to the company's pofits in any
tangible way by being clients.

More generally, you might want to check out the percentage of any listed
company owned by institutional investors and whether the exchange allows
foreign investment - in that case, there's probably a number of shareholders
that actually contributed nothing to the company's profits either.


On 18 February 2011 08:20, robert yawe <robertyawe at yahoo.co.uk> wrote:

> Airtel are in the process of having Celtel Zimbabwe de-listed from the
> Zimbabwe stock exchange, this might not seem like much but in reality it is
> a reflection of Airtels profit sharing strategy.
>
> The effect of this action is that the common Zimbabweans will not benefit
> from the profits of the company even though they will have been generated
> locally.  Instead the government of Mugabe will receive large volumes of
> money through corporate tax.
>
> Lets appreciate the fact that Safaricom at least allows us to share in
> their profits through dividend as shareholders.
>
> Regards
>
> Robert Yawe
> KAY System Technologies Ltd
> Phoenix House, 6th Floor
> P O Box 55806 Nairobi, 00200
> Kenya
>
> Tel: +254722511225, +254202010696
>
>
>
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