Vodacom will fight for DRC asset: Uys
Vodacom Group CEO, Pieter Uys says that the operator is appealing a court decision in the Democratic Republic of Congo for the auction of its wireless unit on 3 June.
Shares in Vodacom advanced in early trade on the JSE on Monday, adding R1.98 or 1.98% to R101.98, having dipped below R100 amid concerns over its Congo business.
The court in the DRC issued an order on 14 May to auction Vodacom’s 510,000 shares in its 51% held Vodacom Congo SPRL unit, in order to enforce its January judgment that Vodacom pay Moto Mabanga’s Namemco Energy a $21 million consulting fee.
It said in the announcement that “in the case of failure of payment of the amount due to the plaintiff,” it would continue with a sale of the seized shares on 3 June.
Mabanga started legal proceedings against Vodacom in 2011, seeking a $40.8 million success fee for work done during 2007 and 2008.
In a conference call on Monday, Uys said: “We will not allow the 3rd of June to happen. They (the court) have set a date for the possible sale of the asset there. We still do not agree with the findings there.”
Uys said that Vodacom was appealing on many levels. “We are appealing. We will not get to a situation on the 3rd of June where we will let the asset get sold.”
Over the longer term, Vodacom intends to dispose of its share in Vodacom Congo, however, Uys insists that the group will do so on its own terms.
Vodacom appointed London-based NM Rothschild & Sons to guide the company through an exit strategy amid a long running dispute with fellow shareholder, Congolese Wireless Network (CWN).
Uys said that there was a difference between an auction process and a more structured sale process. “We were running a more structured process, that has not concluded,” Uys said, adding, however, that the process was currently on hold amid the court battle. “We have had a disruption around a company called Namemco.”
The group chief said that one party remained “very interested” in its stake in Vodacom Congo, with one additional bidder also in the frame. “The whole thing is on hold,” he stressed.
On Monday, Vodacom reported a 9.4% rise in revenue to R66.93 billion for the year ended March 2012, from R61.197 billion before.
The group lifted operating profit to R16.617 billion, from R 13.696 billion in 2011, while headline earnings per share improved 8.1% to 709 cents.
The mobile operator said that customers increased 29.9% to 47.8 million adding 11.0 million.
Group service revenue was up 7.8% to R58.245 billion, while group EBITDA grew 10.5% to R22.763 billion.
Vodacom improved its total dividend per share by 54.3% to 710 cents.
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