Pension fund takes 20% stake in C&W Seychelles

22 Nov 2019

Seychelles Pension Fund (SPF) has acquired a 20% equity share in fixed and mobile operator Cable & Wireless (C&W) Seychelles for USD24 million, giving it a seat on the telco’s board, Seychelles News Agency reports. Earlier this month a 100% Seychellois consortium under the CWS Investment banner bought C&W in its entirety from Liberty Latin America at an enterprise value of USD104 million, with the total purchase price reaching USD130 million including other acquisition costs, with the subsequent aim of selling minority stakes – up to 43% of equity – in C&W to other local investors. CWS representative Gregory Albert commented on the latest transaction: ‘We expressed that there were 43% of unallocated shares … we were looking to share [ownership] with Seychellois. In this context, we saw that the Pension Fund comes perfectly aligned with this decision, because this is one way to reach a maximum number of Seychellois – over 43,000 people – in a fast manner and at all levels.’ Albert added that CWS is now ‘working on how to continue to reach out to every level of Seychellois when it comes to the remaining amount of shares.’

Seychelles News Agency also reports, however, that the opposition coalition party Linyon Demokratik Seselwa (LDS) has raised concerns over the transaction, claiming that the SPF paid too high a price for its C&W shares and calling for a full inquiry. LDS says that it ‘is alarmed at the possible ramifications of the transaction by the SPF over the purchase of shares in C&W Seychelles and calls for immediate action on several fronts to avert what may be an attempt to exploit the resources of the Fund for the benefit of some individuals.’

Seychelles, Cable & Wireless Seychelles