Tensions were running high on Monday at the Botswana Telecommunications Corporation Limited (BTCL) Annual General Meeting as shareholders expressed concern at the company’s weak share price performance at the Botswana Stock Exchange.
While most questions raised by individual shareholders were centred on the depreciation of the share price, others expressed concern about the exit of BTCL Board Chairperson Daphne Matlakala who served for only three years. Matlakala’s departure was first made public knowledge early this month, just a few months after the departure of the former managing director Paul Taylor.
“The departure of the newly listed entity and its chairperson taking place in a short period of time can affect the share price,” expressed one concerned shareholder.
Worse still, another shareholder raised concerns around the company’s impairments which in his view should have been paid before listing at BSE. Overall, there was concern over why there was no preparation to appoint the company’s substantive MD as they long knew that the Taylor’s employment contract would not be renewed.
Responding to the questions, acting Managing Director, Anthony Masunga, stated that the share price performance depends on the buying and selling of shares as well as other market dynamics, adding that there is already some improvement in the share price.
For her part the outgoing BTCL Chairperson Matlakala stated that although concerns had been raised about some of the new board members, particularly Letshwiti , she said due diligence had been done and the new members qualify to be part of BTCL.
Information contained in the BTCL traded prices shows share prices since the initial listing with a tag price of P1.00 per share and it then started trading at P1.30 on 8th April 2016. The share prices kept dropping on a daily basis and the lowest it got was 84 thebe on the 16th August 2016. Since then the BTCL share prices have been steadily trading at 85 thebe from 11th August 2016 to 28th October 2016.