South African telecoms market is in the middle of a shake-up, following MTN’s admittance last week that it is in merger talks with India’s Reliance Communications.
That being said, the country’s fixed-line operator Telkom said it has received a non-binding proposal from Vodafone to sell piece of its 50% stake in the largest mobile operator in the country, Vodacom. Vodafone already owns the other half of Vodacon, and has previously stated its interest in gaining control. The Big Red carrier wants a further 12.5% stake in Vodacom and is ready to pay 18.75 billion rand ($2.47 billion) to get it. Telkom said the latest discussions with Vodafone began on May 14th.
At the same time, other players wants a piece of the largest South African mobile operator, as well. According to Telkom, they’ve received a letter from Mvelaphanda Holdings, together with Och-Ziff Capital Management Group and other strategic funders, for its entire issued share capital provided it unbundles its stake in Vodacom…
We’ll keep watching the global mobile market and let you know as soon as we hear something else on this. Stay tuned.
[Via: Reuters]