Vodafone/Telkom to meet

23 October, 2006 at 4:07 pm | Posted in Companies | Leave a comment

Fixed-line telephone operator Telkom would meet UK cellular operator Vodafone this week to change the shareholder agreement that prevented Vodacom from expanding north of South Africa, Telkom’s chairman, Nomazizi Mtshotshisa, said at Friday’s annual general meeting.
Vodafone and Telkom each own a 50 percent stake in Vodacom.

Mtshotshisa said the companies were in agreement that certain factors in the clause “impedes growth” for Vodacom, which has more than 23 million subscribers in Tanzania, Lesotho, Mozambique, South Africa and the Democratic Republic of Congo.

Telkom had compiled a draft suggestion on where the shareholder agreement could be amended, she explained. The draft would be presented to Vodafone at the meeting.

Analysts say the shareholder agreement has resulted in significant market loss for Vodacom as there were no longer attractive opportunities left on the continent.

The agreement gave Vodacom’s competitor, MTN, the opportunity to aggressively expand throughout the continent. MTN now operates in more than 21 countries, including its recent acquisition of Investcom, which gave it access to 10 new markets.

(BusRep)

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