/ 3 June 2005

Vodacom, Virgin eye stake in Nigerian V-Mobile

Vodacom, in partnership with United Kingdom-based virtual network operator Virgin Group, late on Thursday confirmed their intention to launch a joint bid for a major shareholding in mobile operator V-Mobile Nigeria.

The partners said their intention is to bring together their extensive expertise in the mobile telephony market, and have formed a consortium to undertake a joint bid for a controlling holding in V-Mobile, while Vodacom’s 50% shareholder Telkom is vying for a stake in fixed-line Nitel.

Vodacom left Nigeria last year following corporate governance concerns, but the South African operator later said it had not written-off investing in Africa’s most populous country.

The members of the consortium believe that the combination of understanding African markets as well as proven skills in successfully operating in highly competitive markets, will prove to be a very attractive proposition for V-Mobile shareholders and others.

It will ensure that V-Mobile becomes a far stronger company, they added. – I-Net Bridge