The shareholders of Sonatel, Senegal's national telecommunications company, have been summoned to an extraordinary general assembly on October 8, 2026, to vote on several key proposals. One of the main points on the agenda is the division of the company's shares by a factor of ten, which will reduce the nominal value of each share from 500 to 50 francs CFA. This move is expected to make the shares more accessible to investors and does not affect the overall value of the shareholders' portfolios.
The proposed division of shares is based on an instruction from the Regional Council of Public Savings and Financial Markets (CREPMF) and aims to make the shares more liquid and attractive to investors. If approved, the company's capital will remain unchanged at 50 billion francs CFA, but the number of shares will increase from 100 million to 1 billion. The company's largest shareholder, Orange, which currently holds 42.33% of the shares, will see its stake diluted, but its voting power is expected to remain significant.
A third proposal on the agenda has sparked controversy, as it seeks to remove two clauses from the company's statutes that were introduced during the privatization process in 1997. These clauses guaranteed the Senegalese state a minimum representation on the company's board of directors and gave it veto power over certain decisions. The removal of these clauses is seen as a significant shift in the balance of power within the company, with Orange and other shareholders potentially gaining more influence.
The two clauses in question were introduced to ensure that the Senegalese state had a degree of control over the company's strategic decisions, particularly during the period when the company held a monopoly on telecommunications services in Senegal. However, with the expiration of the monopoly and the opening of the market to competition, the company's management argues that these clauses are no longer necessary and are, in fact, obsolete.
The proposed changes to the company's statutes have been presented as a way to bring the company's governance in line with its current situation and to reflect the evolution of the company since its privatization. The company's management has emphasized that the changes are aimed at making the company more agile and responsive to changing market conditions, but some observers have expressed concerns about the potential impact on the state's influence over the company's strategic decisions.
The vote on the proposed changes is expected to have significant implications for the future of Sonatel and the balance of power within the company. The company's shareholders will need to carefully consider the potential consequences of the proposed changes and make an informed decision based on their interests. The outcome of the vote is also likely to have an impact on the company's relationships with its stakeholders, including the Senegalese state, Orange, and other investors.
The assembly will take place via videoconference on October 8, 2026, at 15:00 GMT, and shareholders will have the opportunity to vote on the proposed changes. The company's management has made the necessary documentation available to shareholders, and the vote is expected to be a closely watched event in the Senegalese business community.
Key points
- Sonatel's shareholders to vote on dividing shares and removing state veto power.
