Vodacom and Telkom heading for a split?

B

BobbyMac

Expert Member
Joined
Jan 17, 2007
Messages
3,353
Reaction score
0
Acting CEO of Telkom (JSE:TKG), Reuben September, confirmed today that the company was reviewing its mobile strategy. However, he would not be drawn on revealing any details. Telkom did say though, that “speedy action is imperative”.

As part of Vodafone’s results coverage, the Financial Times reported two weeks ago that Telkom was reviewing its participation in the venture. Vodafone and Telkom each own 50% of Vodacom. September said today: that “if presented with a bona fide offer from Vodafone, the board would be obliged to consider it”.

September described the relationship with Vodacom as “challenging”, and said that having its own mobile phone business is “crucial” for expansion.

Vodacom CEO Alan Knott-Craig earlier described its relationship with shareholder Telkom as “good”, but added that Vodacom did “need a degree of independence”.

Vodacom and Telkom are increasingly on a collision course, as each begins encroaching slightly on the other’s traditional territory.
Click to expand...
http://www.moneyweb.co.za/mw/view/mw/en/page39?oid=140920&sn=Detail
I really hope this materialises.
 
Stupid

Telkom would be very stupid to sell Vodacom currently. Vodacom sales have risen so far mainly because of Telkoms lack of competence to provide a effective service, which is why Vodacom saw such a drastic increase in data subscribers.

People would rather have a service which they dont have to wait 4 months for, and at the moment is far more cost effective.

Vodacom is a cash cow for Telkom currently and to sell there share now would effectively be shooting themself in the foot.

But then again nothing Telkom does ever makes sense.

I personally would be very happy to see Telkom sell there share of Vodacom. i think Vodacom would then be further unhindered and would blow Telkom out of the water.
 
Well if the price is right they will sell. I don't normally say go with the herd but too many analysts believe this will happen for there not to be at least a bid from vodafone.
 
TiredOfWaiting said:
I don't think Telkom will ever sell off that goldmine.
Click to expand...

I think they might, at the right price. At the moment Telkom may get major profits from Telkom but they don't have much control, if they sold Vodacom they could buy a network like Cell C and fully integrate it into their business and start offering triple play and quadruple play bundles once IPTV comes online, it would put them in quite a strong position to fend off Neotel.
 
Syndyre said:
I think they might, at the right price. At the moment Telkom may get major profits from Telkom but they don't have much control, if they sold Vodacom they could buy a network like Cell C and fully integrate it into their business and start offering triple play and quadruple play bundles once IPTV comes online, it would put them in quite a strong position to fend off Neotel.
Click to expand...

I read an article somewhere which said they were selling off Voda and buying Cell C. And going by all the rumours going around I'm pretty sure something like this is on the cards.
 
Would be interesting to see whether the competition commision would allow them to buy cell c
 
ShaunSA said:
I read an article somewhere which said they were selling off Voda and buying Cell C. And going by all the rumours going around I'm pretty sure something like this is on the cards.
Click to expand...

Read the same article. ;) Heard last year sometime that Vodafone wanted to acquire Telkom's stake in Vodacom so this isn't a new phenomenon, probably just becoming more and more likely.
 
This is interesting too:

Vodacom CEO Alan Knott-Craig wants to acquire an internet service provider to flesh out its own internet activities. But the deal under consideration involved a group involved in far more than pure internet services, he said.
Click to expand...

I wonder who that could be, the rest of iBurst, DataPro, IS?
 
hope they do. I wonder tho if they are allowed to fully buy a Cell company tho.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X