Vodafone should split Vodacom from Europe

·23 May 2015

An American billionaire has suggested that Vodafone should split its companies outside of Europe, including Vodacom in South Africa, from its holdings in the likes of Germany, Holland, and the UK.

Vodafone currently holds approximately 65% in Vodacom.

John Malone, chairman at Liberty Global, a telco operating in 12 countries in Europe and with Virgin Media under its ownership, told Bloomberg, that Vodafone would make a ‘great fit’ if it was prepared to split it’s European networks with those in countries like Turkey, India and SA.

“We’ve looked at that from our side and there would be very substantial synergies if we could find a way to work together or combine the companies with respect to western Europe,” he told Bloomberg.

Malone compared Vodafone to “a big banana in the jar…The question is: how do you get your hand out of the jar with the banana”.

In March Vodafone said it is open to talks with the South African government regarding a proposed sale of it’s stake in Vodacom.

The government is reportedly looking to sell its 13.9% stake in Vodacom to fund ailing power utility, Eskom.

Vodafone chief executive officer, Vittorio Colao, told Reuters on his brief visit to the country: “We are happy where we are. We are happy with the current situation. Having said that we would be open to discussions.”

“If we find things that make sense, whether it’s Liberty or Hellas Online or whatever, we will look and consider and if there aren’t, we continue with our organic strategy,” Colao said in a conference call earlier this week.