Vodafone’s African Safari
I would go for deal along the lines of:
- Vodafone to take control of Telkom with Vodafone placing its’ 50% equity in Vodacom into the “new” company
- Around 25% of the “new” company floating in
to give local investors a chance to invest South Africa
- Vodafone committing to keeping
as the South Africa Africaoperational base for all its’ sub-Saharan business and the “new” company as the vehicle for ownership.
- Vodafone committing to investigating “business process outsourcing” from
Europeinto Africa. This would take the form of call centres and other back office functions.
The last three points are really all about making the deal politically palatable and anyway make a lot of business sense.
I would then go straight away into geographical expansion mode pursuing four deal simultaneously:
1) Move Safaricom assets into Vodacom. I would also buy a majority share of the company from the government; I would also make an offer to solve its’ fixed line problems; and I would solve the mystery of the missing 5% ownership, whereby Vodafone only claim 35% ownership whereas everyone else seems to think they own 40%.
2) Move to buy the Portugal Telecom (PT) African assets: these include prime assets in neighbouring
3) Move into
4) Make an offer to buy
In summary, I think a deal could be made to work for both parties and allow Vodacom to expand to consolidate its' leadership position in Africa. Currently, I would not place Vodafone asset in Egypt in Vodacom and instead look at using the Egyptian asset to expand in the Middle East.