PSPF, ESWATINI MOBILE SHARES ACQUISITION APPROVED

MBABANE – Acquisition of shares in Eswatini Mobile Limited by the Public Service Pension Fund (PSPF) has been approved by the ECC.

The Eswatini Competition Commission (ECC) examines merger notifications in order to make a determination on the effects of such transactions on competition and then either gives conditional approval, approval with conditions or prohibits the transactions based on the outcome of the analysis. According to the ECC 2021/22 first quarter report, the acquiring firm is PSPF, which  is a Fund established in terms of the Public Service Pensions Order of 1993 and it is based at Sixth Floor Ingcamu Building, Mhlambanyatsi Road, Mbabane.

The Fund is constituted by all civil servants who are its members. PSPF is a defined benefit Fund established for the management and administration of pensions for government (public sector) employees.  The assets of the Fund consist of contributions made by its members and government (as their employer) as well as from yields from investments of the Fund. The primary nature of PSPF’s business is that of a pension fund. At a secondary level and as part of PSPF’s investment portfolio, the acquiring firm has an ownership stake in various business enterprises actively engaged in real estate leasing, hospitality and forestry.

registered

The target firm is Eswatini Mobile Limited and their registered office is at Madlenya House, First Floor, Corner Gwamile and Mdada Street, Mbabane, Eswatini. Eswatini Mobile carries on the business of mobile telephone network services provider, retailers and agents for the purpose of trading in and resale of mobile telephones and such related gadgets. The goods comprise mainly of mobile telephones, modems for the provision of internet connections and such related goods. The main business is the provision of a mobile telephone network service provider. In reaching the decision, the Commission considered the products of the firms and concluded that the relevant market was the provision of mobile telephone network services and related business in Eswatini.
“There are overlaps between the activities of the merging firms due to the fact that the acquirer is already a shareholder in the target. Pursuant to the implementation of the proposed transaction, PSPF will acquire control over Eswatini Mobile with 48.8 per cent shareholding.

“Post-merger, the market shares in the relevant market, market concentration, countervailing power and barriers to entry will not be affected. The transaction is unlikely to result in the substantial lessening or prevention of competition,” ruled Commission.
Therefore, the transaction was approved without conditions.  Meanwhile, in another notable transaction, the Commission also approved without conditions the acquisition by Wellom Investments Proprietary Limited of 55.52 per cent shares held by businessman Moses Motsa and 10.03 per cent shares held by North Wind Trading 196 CC in Lidwala Insurance Company Limited.

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