Chinese Retreat from African Lemons
I’m not sure what Kinnevik’s strategy is going to be going forward but the African Assets seem a little ugly to me.
The bulk of the population is in the Tanzanian and DR Congo networks: in both countries Millicom seem a decent third behind Vodacom and Celtel. The obvious purchaser for these assets in MTN, but they may be suffering from indigestion consuming Investcom. Ghana seems an interesting asset but the time might not be right for Vodacom to move into West Africa, especially if they have to purchase the “just out of war” Sierra Leone asset.
Overall, Millicom’s African Revenues in 1Q 2006 was US$67m with Operating Profit of US$20m. I suspect a lot of this profit is from
There is an option which would generate a lot more cash for Millicom and that would be to allow Vodacom to buy the operations in
Finally, words of wisdom for Vodafone from the great strategist, Sun Tzu “When some are seen advancing and some retreating, it is a lure”
There is an asset which has been mentioned in dispatches and that is Uganda Telecom which is both fixed and mobile. The Ugandian cellular market consists of three companies: MTN, Celtel and Uganda Telecom. This would make a lot of sense to buy, especially as MTN and Celtel can’t pump the price up.