[kictanet] [AfrISPA.Discuss] It is more interesting in SA

[Badru Ntege]

In business the benjamins $$$$ decide who your bedmate is and not the
principles.  Even your worst enemy in business harbors an opportunity.
Would like to see the outcome and interested to see whether the principle of
public good or even Critical infrastructure play a role here.

 

From: Discuss-owner at afrispa.org [mailto:Discuss-owner at afrispa.org] On Behalf
Of Eric Osiakwan
Sent: Sunday, October 21, 2007 12:39 AM
To: discuss at afrispa.org; APC - Private list for use by EASSY Workshop
Participants; KICTAnet ICT Policy Discussions
Subject: [AfrISPA.Discuss] It is more interesting in SA

 

Well, the mobile operators are buying the incumbent in Joburg and the
politicians are comfortable with the situation....really interesting times

 

South Africa's Government Backs Telkom Asset Sale to MTN

The communications department said it backed discussions between Telkom and
MTN over plans by the fixed-line operator to sell some of its infrastructure
to MTN.

A brief statement by the department removes one of the main hurdles that any
deal would face, since the government holds 38,9% of Telkom.. "As
government, we are in principle supportive of the current discussions. We
will await additional information in this regard prior to commenting
further."
The government is presumably now more au fait with both parts of Telkom's
plan, since the department is working "in an interdepartmental task team to
ensure that the interest of the country, all the workers and those of
shareholders is protected".

Analysts think MTN may combine its business in SA with Telkom's fixed-line
unit and spin that off in a publicly traded company. The new company would
be worth R55bn, and MTN might give its investors shares in the new company,
said Scott Ryall, an analyst for Macquarie Bank.

"Although we don't believe there would be significant synergy from combining
the two South African businesses, this transaction could still be a positive
for MTN," Ryall said.

An outright purchase by MTN of Telkom's fixed-line business would be the
"worst outcome for MTN and the best for Telkom" as it would dilute MTN's
growth and its attraction as an emerging markets company and transfer the
risk of owning a fixed-line network, Ryall said. However, Telkom investors
would benefit from a share price upside of up to 15%, he estimated.

A second option was for Telkom itself to buy MTN's local operations after
Telkom sold its shares in Vodacom, Ryall said. MTN's growth in SA had slowed
as the market became saturated. Selling its local arm to Telkom may make
MTN's operations in 20 other countries look more "appealing to growth
investors ," Ryall said. 
(Source: Business Day)

 

 

Eric M.K Osiakwan

Executive Secretary

AfrISPA (www.afrispa.org)

Tel: + 233.21.258800 ext 2031

Fax: + 233.21.258811

Cell: + 233.244.386792

Handle: eosiakwan

Snail Mail: Pmb 208, Accra-North

Office: BusyInternet - 42 Ring Road Central, Accra-North

Blog: http://blogs.law.harvard.edu/eric/

Slang: "Tomorrow Now"

 

 





 

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