Econet Media has placed its satellite broadcasting business into administration, Business Day reported.
Quoting Econet Media CEO Joseph Hundah, the report said Econet, which operates under the Kwese name, plans to talk to creditors in an effort to rescue the business.
Ernst & Young has been appointed to manage the process, Business Day said.
Kwese TV will continue to operate free-to-air television operations in various African markets, according to the report.
In March, Kwese Free TV was given a licence by communications regulator Icasa to launch a free-to-air TV service offering five free channels to viewers, including a 24-hour sports channel.
Twenty percent own by Econet Group (the parent of Liquid Telecom), Kwese Free TV was the first free-to-air terrestrial broadcaster to be licensed since e.tv received its licence in the late 1990s.
Five entities had been vying for the licence, which includes a chunk (55%) of radio frequency spectrum in what is called digital broadcasting “Mux 3”.
Icasa has given Kwese 24 months to launch the service, or until March 2021.
Other shareholders in Kwese Free TV include Royal Bafokeng Metix (part of Royal Bafokeng Holdings), which has a 45% stake, and Moss Mashishi’s Mosong Capital, which has a 35% stake. South Africa’s legal framework prevents Econet, a foreign company, from owning more than 20% of the new entity. — (c) 2019 NewsCentral Media
- This is a developing story