TNM, the Malawi Stock Exchange (MSE)-listed mobile network providers, has projected that its 2014 profit will be 90 percent above that of last year.
In a published trading update released in line with MSE requirements and signed by company secretary Christina Mwansa, TNM said the information on which the trading statement is based has not yet been reviewed or reported on by the company’s external auditors.
“TNM further wishes to advise that any significant movement of the Malawi kwacha exchange rate against other major currencies during the month of December 2014 could have an impact on the final results,” reads the update.
The kwacha, which has since September 2014 been on the free-fall, seems to have stabilised and has appreciated slightly against the dollar and rand, thanks to foreign exchange receipts from other agricultural commodities such as sugar, tea and pulses, according to Reserve Bank of Malawi (RBM).
On the MSE, TNM’s share price gained by two tambala to K4.07 in the week ending December 12 from K4.05 the previous week.
Meanwhile, TNM said it has finalised negotiations and entered into a transaction agreement to acquire the ISP business and related assets of Burco Electronic Systems Limited to use these assets to establish the TNM business service division.
“The transaction is subject to obtaining the approval from the Competition and Fair Trading Commission (CTFC) of Malawi and the shareholders will be informed of further development as and when required,” said a statement from the chairperson of the board of TNM Matthews Chikaonda.
Earlier, CFTC said in a statement the proposed transaction will only involve the acquisition of Burco’s ISP business operations while the hardware and other related business operations will be retained.
“In accordance to the Competition and Fair Trading Act, the commission has launched investigations to assess the likely effect of the acquisition on competition in the relevant market,” said a statement from the commission.