By Sikonathi Mantshantsha and Michael J. Kavanagh - Oct 17, 2011 8:05 PM GMT+0700
MTN Group Ltd. (MTN), Africa’s largest mobile-phone operator, is seeking to buy Vodacom Group Ltd. (VOD)’s operations in the Democratic Republic of Congo, two people with knowledge of the matter said.
MTN is part of a bidding process for Vodacom Congo SPRL, the people said, declining to be identified because the matter is confidential. MTN, the Johannesburg-based company that operates in 22 markets across Africa and the Middle East, made a presentation to Vodacom last week and there is no outcome yet as the process hasn’t been completed, one of the people said.
Vodacom, which is also based in Johannesburg, is still busy with a process being run by London’s NM Rothschild & Sons Ltd. to “explore options” for its Congo unit, spokesman Richard Boorman said in an e-mailed response to questions today. MTN “continues to search for value-enhancing opportunities everywhere,” spokesman Rich Mkhondo said in a mobile phone text message in response to questions.
Vodafone Group Plc-controlled Vodacom, which owns 51 percent of Vodacom Congo, has been in a dispute with 49 percent shareholder Congolese Wireless Network SPRL over the funding and operational structure of the joint venture since at least early 2010. The dispute follows a capital injection of $484 million into the business by Vodacom. The company may sell its stake to end the dispute, Chief Executive Officer Pieter Uys said on May. 16.
Vodacom’s Congo unit had 4.2 million subscribers at the end of March, the company said in its annual report, released on July 1. MTN currently doesn’t operate in Congo, which the CIA World Fact Book estimates has a population of 71.7 million.
To contact the reporters on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net; Michael J. Kavanagh in Kinshasa at mkavanagh9@bloomberg.net
To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net
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