Telkom not chasing MTN

1 Nov 2006

Telkom South Africa has denied reports that it is considering leaving its Vodacom wireless venture and buying into pan-African rival MTN. A number of media reports have suggested that Telkom is growing uneasy in Vodacom, its 50/50 venture with Vodafone of the UK, which is South Africa’s largest cellular operator. A shareholder agreement currently restricts Vodacom’s activities to southern Africa, leaving Vodafone free to exploit opportunities elsewhere on the continent. Telkom has proposed that the restrictions be lifted, allowing Vodacom to expand further afield, a strategy which has brought success at MTN, but Vodafone has so far refused to alter its position. Johannesburg daily Business Day reports that Telkom is, however, playing down the talk of a move for MTN, although a company spokesperson did admit that MTN was an ‘attractive asset’ and did not rule out the possibility of a move in the longer term.

South Africa, MTN Group, Telkom South Africa, Vodacom Group