TNM hereby wishes to announce that we have initiated a process to investigate the opportunity to purchase the ISP Business and related assets from Burco Electronics Systems Limited subject to completion of applicable regulatory reviews and approvals.
The new Universal License issued to TNM by Malawi Communications Regulatory Authority (MACRA) allows TNM to supply all possible telecommunication services to its customers.
TNM believes this acquisition will enable us to establish and deliver a broad range of telecommunications services to our business customers, as well as providing enhanced services to Burco’s existing customers.
TNM aims to accelerate the growth of ISP services in Malawi which it currently provides to its customers through mobile devices with faster innovation, increased synergies, unified branding and marketing.
By acquiring the existing infrastructure from Burco TNM will prevent duplication and thereby create the opportunity to lower the long term cost of services to customers.
As elsewhere in the world with the growth and development in the use of Data applications, TNM aims to become a high quality service provider in the Malawi business environment which supports businesses with affordable and high quality services.
The transaction value will not be material in the context of the overall business of TNM. Our projected total spend on new infrastructure for 2014 is USD 25 million and the acquisition of the Burco assets will only represent a small portion of this investment.
The Management of both companies are currently in discussions to determine the possibility of a successful transaction.
TNM has submitted the required application to the Competition and Fair Trading Commission (CFTC) and has informed MACRA and the Malawi Stock Exchange (MSE) of the developments.
TNM will issue a cautionary notice to our esteemed shareholders, once a significant level of agreement has been achieved for the proposed transaction.