Vodafone in talks to buy stake in MTN
24 Mar 2008
Global cellular giant, Vodafone Group Plc is in talks to buy a a multi-billion rand stake in MTN Group Ltd.'s international operations, a South African cellphone company, according to a newspaper report yesterday.
Vodafone initiated the talks with MTN after the South African government blocked it from purchasing a controlling stake in rival local phone operator Vodacom, South Africa's Sunday Times reported.
Vodafone has initiated the talks after being blocked by South Africa's government from taking a bigger stake in Vodacom Group Ltd., which it jointly owns with Telkom South Africa Ltd, the Johannesburg-based newspaper said.
The proposed deal will not include MTN's operations in South Africa, where it competes with Vodacom, the paper added.
According to the newspaper , MTN chief executive officer Phuthuma Nhleko said that Vodafone was among companies that had approached it about a partnership, but said he had nothing to report to shareholders.
Headquartered in the UK, Vodafone is the largest mobile telecommunications network company in the world in terms of revenue. The company has a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States.
The MTN Group is a global telecom service provider, which has three business divisions: MTN-SA (South Africa), MTN International, and Strategic Investments. The company operates in 21 countries in Africa nad the middle East.
