Botswana Stock Exchange (BSE) has gone private and will operate as a company with shareholding.
Now to operate under the Companies and Intellectual Property Authority (CIPA), the newly established Botswana Stock Exchange Limited (Ltd) has intentions of listing in the BSE after thorough mediation between the shareholders.
BSE Limited Chief Executive Officer, Thapelo Tsheole revealed this at the BSE offices in Fairscape Precinct business district in Gaborone yesterday (August 8th).
Tsheole revealed that the infant company has five shareholders being the Government of Botswana, Motswedi Securities, Imara Capital Securities, African Alliance and Stockbrokers Botswana, which hold an 81.3, 4.32, 5.75, 2.88 and 5,75 percent stake in its shareholding respectively.
Speaking to the journey leading up to the formation of the company, Tsheole said the process was painful and emotional to both the stakeholders and the staff.
“There was just too much work to get through as well as persuading stakeholders such as the shareholders and stock brokers to go along with the idea,” said Tsheole of the painstaking process that took 4 years.
He explained that as the BSE CEO before the demutualization, he had to contend with a Board of Directors with nine people of which 6 were stockbrokers, the other three appointed by the Minister of Finance.
“This presented a conundrum in that the BSE governs stock brokers and should call them to book when they step out of line, but there comes a problem if the broker has six representatives in the board,” said a visibly relieved Tsheole.
The new company, which is estimated at a net worth of P35, 600, 000 will acquire a totally different board structure in that its board will have two non-independent members, a stockbroker and a government representative as well as seven independent members from the public.
He also said one of the pending issues surrounding the demutualization of the BSE is a 5 percent employee share scheme that the shareholders are currently looking into.