Vodafone says it is open to talks with the South African government regarding a proposed sale of it’s stake in Vodacom.<\/p>\n
The government is reportedly looking to sell its 13.9% stake in Vodacom to fund ailing power utility, Eskom.<\/p>\n
Reuters reported that Vodacom’s parent company has not yet held talks with the government; however, Vodafone chief executive officer, Vittorio Colao, said: “I personally haven’t got any discussion on that topic.”<\/p>\n
“We are happy where we are. We are happy with the current situation. Having said that we would be open to discussions.”<\/p>\n
Vodafone holds approximately 65% in Vodacom.<\/p>\n
Vodacom has come under some pressure in it’s home market in recent months. In February, the group reported a 3.8% decline in active South African subscribers in a quarterly update for the period ended December 2014, along with a 3.1% decline in revenue for its South African unit to R15.99 billion.<\/p>\n
Service revenue in SA declined 5.8% due to MTRs in April 2014 and by increased competition and weaker consumer spending, the group said.<\/p>\n
Active customers in South Africa slipped to 31.379 million at the end of December 2014, from 32.613 million at the end of September.<\/p>\n
Vodacom’s scope of movement is limited to Sub-Saharan Africa due to an agreement with Vodafone.<\/p>\n
Vodacom has networks in Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho.<\/p>\n
Colao told Reuters that Africa presented the group with few and expensive opportunities.<\/p>\n
“The good assets in Africa, often the owners have a disproportionate idea of their value and therefore they don’t sell in the end. Or there are assets for sale but they are not good companies,” he said.<\/p>\n
Vodafone has a presence in Egypt, Ghana, Kenya and Uganda.<\/p>\n
Government eyes Vodacom sale, MTN mulls Telkom buy: report<\/strong><\/a><\/p>\n