CHAMWE KAIRA
Paratus Namibia Holdings Limited informed shareholders that it has obtained the necessary regulatory approval from Communications Regulatory Authority of Namibia (CRAN) and the Namibian Competition Commission in order for Paratus Group Holdings Ltd to underwrite the Rights Issue on 20 May.
A Rights Issue is when a company offers its existing shareholders the chance to buy additional shares for a reduced price. Usually the discounted price will stand for a specified time frame, after which it is returned to normal.
“Pursuant to the announcement of the results of the general meeting of the shareholders released on NENS (Namibia Stock Exchange notice) on Tuesday 26 March 2024, and the circular published on 23 February 2024 shareholders are hereby advised that the company has obtained the necessary regulatory approval from CRAN and the Namibian Competition Commission in order for Paratus Group Holdings Ltd to underwrite the Rights Issue,” the notice said.
Paratus said it intends to use of proceeds from the right issue expand its existing offerings by adding mobile connectivity and new core systems which, when coupled with the infrastructure that has already been developed and deployed by Paratus, will allow Paratus to more effectively and efficiently use its existing network to provide for customer needs.
“The intended use of proceeds will allow for maximum benefit to be derived from existing networks and infrastructure, while introducing new technologies and services to complement Paratus’ current offerings in order to grow its customer base and revenue generation capabilities,” the notice to shareholders said.
Qualifying shareholders will be entitled to subscribe for 50,184,817 Rights Issue Shares. The subscription price will be N$12 per Rights Issue Share.
The Paratus Group shall take up a minimum of 22.838 million Rights Issue Shares, by virtue of Paratus Group following their Rights (to the value of N$ 274 million) and up to a maximum of N$ 400 million.
Over the last two decades, the Paratus Group has grown into a fully-fledged telecommunications operator with a network spanning the continent, connected to the world.
The Paratus Group operates in Angola, Botswana, DRC, Mozambique, Namibia, South Africa, and Zambia. With the ultimate holding company registered in Mauritius.
Paratus connects more than 35 African countries through a distributed reseller network across the continent.
Paratus Namibia Holdings forms part of the greater Paratus Group, with Paratus Group holding 45.51% interest in Paratus Namibia Holdings.
