Question NW280 to the Minister of Communications and Digital Technologies

Reply:

I have been informed as follows:

The process of concluding the Broadband Infraco (BBI) acquisition is at an advanced stage pending the revision of BBI’s Turnaround Plan to establish funding requirements. The necessary acquisition processes were concluded with a sale offer by the SENTECH Board that was accepted by the BBI Board. This followed a due diligence inquiry and engagements with relevant authorities such as ICASA, Takeover Regulatory Panel, Competition Commission and National Treasury. There have been ongoing discussions with the Industrial Development Corporation (IDC), which is a 26% shareholder of BBI, on their role post the acquisition.

To conclude the BBI acquisition by Sentech the following are recommended:

1. SENTECH and BBI to revise the BBI Turnaround Plan to establish funding requirements.
2. The State, as the sole shareholder of SENTECH, to provide SENTECH with funding based on the approved Turnaround Plan.
3. The Minister to approve the sale of 74% of shares of BBI to SENTECH by signing the Sale of Shares Agreement (SSA) submitted by Sentech to the Minister with applicable terms and conditions. Suspensive conditions that can be fulfilled or waived must also be determined.
4. The BBI Memorandum of Incorporation (MOI) be amended in line with the Sale Agreement.
5. SENTECH to conclude the integration of BBI as its subsidiary.

SITA, meanwhile, is in the process of developing a roadmap for the review of its business model. The details of the review is expected to be submitted to the Department by the end of the current financial year. Once complete, the implementation of the new SITA business model and roadmap will commence in the new financial year and continue thereafter. The Department would then monitor progress through performance reports submitted by SITA.

 

Authorised for submission by

 

 

                                                                       

MS NONKQUBELA JORDAN-DYANI

DIRECTOR-GENERAL

DATE:

 

 

Recommended/not recommended

 

 

__________________________

HON. PHILLY MAPULANE, MP

DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE:

 

Approved/ not approved

 

 

________________________________           

HON. MONDLI GUNGUBELE, MP

MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES

DATE: