Positive talks on Telikom: Duma

By SHIRLEY MAULUDU
THERE have been positive discussions with the two superfunds on the potential investment in Telikom Ltd, State Enterprises Minister William Duma says.
He said discussions with Nambawan Super Ltd (NSL), National Superannuation Fund Ltd (Nasfund) and Kumul Consolidated Holdings (KCH) were ongoing.
“Generally, what has happened was they (two superfunds) have signed a confidentiality agreement and have also signed an exclusivity agreement meaning that KCH will not have discussions with any other potential partners except the two superfunds,” Duma said yesterday.
He said the agreement would expire on Feb 28.
“If the negotiations do not work out then KCH will be free to talk to other potential partners.
That is a commercial consideration.
“Current indications are that all the partners are genuine and discussions so far have been positive,” Duma, who is also Mt Hagen MP, said.
Early last month, KCH acting managing director Prof David Kavanamur presented Nasfund chief executive officer Ian Tarutia and his investment team with an information memorandum for the partial privatisation of Telikom Ltd.
The same information memorandum was sent to NSL chief investment officer David Kitchnoge, inviting NSL to consider the investment opportunity.
“This is a substantial step forward in this SOE (State-owned enterprise) reform initiative and represents weeks of preparation, review, and assessment,” Kavanamur said.
“This fulfils our Government’s directive to commence steps to partially privatise the state-owned telecommunications company, Telikom Ltd, and reduce the state’s control to a minority position,” Kavanamur said.
He said National Executive Council decision number 410/2021 provided the approvals necessary to progress this reform agenda.
Kavanamur said through the exchange of documents on Jan 4, they would work diligently towards a transaction that represented the best interests for both the shareholder and the SOE.
“We look forward to the opportunity to establish a new trajectory of growth and sustainability for Telikom Ltd, supporting the advancement of products and services for the benefit and welfare of our citizens,” he said.