News / National
MTN still keen on Net-ONe
17 Apr 2011 at 10:29hrs | Views
South African mobile-phone giant MTN is keen to acquire 60% of Net*One, although Zimbabwean officials insist it is impossible for foreign suitors to exceed the stipulated 49%-telecoms ownership threshold.
While company managing director Reward Kangai confirmed "offers from a number of international operators", he said the state-owned firm was unable to comment on any particular deal.
"We are unable to comment on those specific offers at this stage, as to do so would be a violation of the confidentiality agreements entered into with those parties," he said.
"In respect of the stake that can be obtained in Net*One, I draw your attention to the Postal and Telecommunications Act, which sets the limit of shares that can be obtained by foreign entities in ... Zimbabwe to a maximum of 49%," he said, adding that evaluations of any bids would be guided by those regulations.
However, insiders said a delegation from the Johannesburg-based company was in Harare in mid-March to firm up negotiations with Net*One and government leaders, notably Communications and Infrastructural Development Minister Nicholas Goche.
"They were here with a revised offer for Net*One and the recent discussions centred on the shareholding issue," they said.
With Net*One reportedly permitted to raise cash through a listing or technical alliance, the Sifiso Dabengwa-led MTN has dangled a $600-million carrot for Zimbabwe's number three operator.
The latest rounds of talks also come as Kangai said on Thursday that Net*One desperately needed "a big company with economies of scale to leverage not only our business in Zimbabwe, but in other countries as well" to ramp technological improvements.
He said $50, $100-million would be required annually to bring the Kopje-based company up to speed with competitors, including Strive Masiyiwa's Econet.
While government recently awarded moribund land-based operator TelOne a mobile licence, Masiyiwa's Econet leads the pack with five million subscribers, followed by Telecel.
In its bid to buy Net*One, the SA company has had to beat off competition from bidders such as Bharti Airtel and China Mobile.
Zimbabwean-born chief executive Sifiso Dabengwa's takeover has also added impetus and optimism for MTN to be Harare's preferred buyer for Net*One.
Meanwhile, the company has invested well over $20-million in capacity expansion and other value-adding products.
These include the $4-million money-transfer product with FBC Bank and technology vendor Afrosoft.
The network has slightly over a million subscribers. Its monthly pre-paid and post-paid subscribers' expenditure averages $15, $25.
The company announced recently that it was owed more than $30-million by a large number of its post-paid subscribers, which can be ploughed back for network upgrades.
While company managing director Reward Kangai confirmed "offers from a number of international operators", he said the state-owned firm was unable to comment on any particular deal.
"We are unable to comment on those specific offers at this stage, as to do so would be a violation of the confidentiality agreements entered into with those parties," he said.
"In respect of the stake that can be obtained in Net*One, I draw your attention to the Postal and Telecommunications Act, which sets the limit of shares that can be obtained by foreign entities in ... Zimbabwe to a maximum of 49%," he said, adding that evaluations of any bids would be guided by those regulations.
However, insiders said a delegation from the Johannesburg-based company was in Harare in mid-March to firm up negotiations with Net*One and government leaders, notably Communications and Infrastructural Development Minister Nicholas Goche.
"They were here with a revised offer for Net*One and the recent discussions centred on the shareholding issue," they said.
With Net*One reportedly permitted to raise cash through a listing or technical alliance, the Sifiso Dabengwa-led MTN has dangled a $600-million carrot for Zimbabwe's number three operator.
The latest rounds of talks also come as Kangai said on Thursday that Net*One desperately needed "a big company with economies of scale to leverage not only our business in Zimbabwe, but in other countries as well" to ramp technological improvements.
While government recently awarded moribund land-based operator TelOne a mobile licence, Masiyiwa's Econet leads the pack with five million subscribers, followed by Telecel.
In its bid to buy Net*One, the SA company has had to beat off competition from bidders such as Bharti Airtel and China Mobile.
Zimbabwean-born chief executive Sifiso Dabengwa's takeover has also added impetus and optimism for MTN to be Harare's preferred buyer for Net*One.
Meanwhile, the company has invested well over $20-million in capacity expansion and other value-adding products.
These include the $4-million money-transfer product with FBC Bank and technology vendor Afrosoft.
The network has slightly over a million subscribers. Its monthly pre-paid and post-paid subscribers' expenditure averages $15, $25.
The company announced recently that it was owed more than $30-million by a large number of its post-paid subscribers, which can be ploughed back for network upgrades.
Source - Sapa
