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Another crash kills nine in Tanzania as road fatalities rise

Legal battles facing Tigo, Airtel to delay DSE listing

Dar es Salaam. Hopes of Tigo and Airtel being listed on the Dar es Salaam Stock Exchange (DSE) are fading away due to challenges facing the two mobile telecommunications companies.

Capital Markets and Securities Authority (CMSA) Principal Public Relations Officer Charles Shirima told The Citizen this week that both companies needed to resolve their legal battles before listing on the bourse.

According to him, even if both companies were to be listed on the bourse before resolving their legal issues it would be difficult for traders to purchase their shares.

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“So far, the two mobile companies have reached a good stage in their attempt to get listed on the bourse. They have submitted their prospectuses to us and we have told them to work on them because they have some shortcomings,” he said.

Earlier this year, business tycoon Yusuf Manji was reported to be the overwhelming majority owner of Tigo. Brick House Law Associates sought to stop the planned sale of the telecoms company shares on the DSE, saying the move was illegal as their client, Mr Manji, was not consulted.

The law firm claimed that Golden Globe International Services, which is associated with the business tycoon, was the absolute majority shareholder of MIC Tanzania Limited with 34,479 shares of the 34,480 shares. The remaining one share was shown to belong to Shai Holdings. MIC Tanzania trades in the country as Tigo.

Airtel Tanzania, for its part, has had a fair share of troubles that have kept it from listing on the DSE. In the past, there were reports of a disagreement between the telecoms firm and the government over, who should offload the 25 per cent of the stake to the DSE.

There have also been reports of jostling for the controlling stake in Airtel Tanzania between the state and the telecoms parent company, Bharti Airtel.

With TTCL’s recent claim of ownership of Celtel, the precursor to Airtel Tanzania, it will be interesting to see how the telecoms company will be able to list on the bourse soon.

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