Regarding the sale of Ethio Telecom shares, which is considered a major milestone in the history of Ethiopia's economic reform, many questions have been raised regarding the progress of the process since it began.
In an official statement released today, the institution provided answers to these questions. It announced that out of the 47,377 Ethiopian investors who purchased shares, 45,000 have fulfilled the necessary requirements and have successfully become verified shareholders of Ethio Telecom.
This indicates that 96 percent of the investors who purchased shares have successfully become verified stakeholders.
It is recalled that Ethio Telecom had previously put 100 million ordinary shares up for sale. During the four-month sales period, only 10.7 million ordinary shares were sold out of the 10 percent stake offered, while the remaining 89.3 million shares remained unsold.
Ethio Telecom CEO Frehiwot Tamiru explained that the company has officially registered on the Ethiopian Securities Exchange. She stated that after the company completed the validation and approval processes, and since the shares have been approved and listed by the Capital Market Authority, the verified shareholders now have the full legal right to sell, buy, and transfer their shares on the market.
The CEO noted that since many shareholders did not initially provide all the required information, time was taken to review and complete that data.
Furthermore, the statement mentioned that starting today, the 45,000 shareholders who have their documentation ready must visit investment banks, dealers, or brokers licensed by the Ethiopian Capital Market Authority to open accounts and complete the necessary steps to begin trading.
On the other hand, the CEO explained that some buyers are not on the list of stakeholders. She stated that the remaining 3.4 percent, or 1,646 share buyers, have not yet moved to the next stage because they were unable to provide their National ID (Fayda) numbers.
However, these citizens can still become stakeholders if they provide their National ID numbers in the future. It was also announced that 248 of those who purchased shares were found to be ineligible because they are not Ethiopian citizens, and their payments will be fully refunded.
Regarding the distribution of dividends, it will be determined based on the direction and decisions provided by the Board and the General Assembly. Since the company’s business calendar runs from July to June, the overall performance will be made public to shareholders once this budget year is completed.
The company's financial performance will be audited by an external auditor, and once completed, it will be posted on the website. Ethio Telecom stated that it will consult with the Capital Market Authority and announce in the future the procedures for calling the General Assembly and gathering the 45,000 shareholders within two months of the end of the budget year.
