Subscribe

Hedberg heads to Multi-Links


Johannesburg, 25 Nov 2009

Telkom is now only waiting for the proper paperwork before it can send Jeffery Hedberg to head up its operations in Nigeria.

Telkom announced in July that it had appointed Hedberg to boost its Nigerian mobile operator, Multi-Links. However, the former Cell C CEO was prevented from taking up the reins earlier, because of an employment agreement with Cell C majority shareholder Oger Telecom.

Since then, Telkom has had little to say about how it would get the turnaround specialist to Nigeria. Many speculated that he would head out after his contract with Cell C expired at the end of this month.

Now Telkom CFO Peter Nelson says the telco is waiting for the proper paperwork, such as his Nigerian visa, to come through, before Hedberg heads out to Nigeria.

Telkom will hope to see Hedberg start soon, and work similar magic for Multi-Links as he did with Cell C.

Multi-Links is in dire straits, knocking Telkom's annual results set with a R1.7 billion net loss. Yesterday's interim results saw Telkom impair the company at R2.14 billion. While there are green shoots showing, Telkom says it is committed to ensuring its turnaround.

MD of Telkom International Thami Msimango has been on the ground with a team to begin the process before Hedberg gets into the African country.

Hedberg will have his work cut out for him over the coming two years, considering Telkom's ambitious targets for Multi-Links. At Telkom's annual results, it said it wants the Nigerian company to be EBITDA positive by 2010/11 and become cash flow positive by 2011/12. Yesterday, Telkom CEO Reuben September reiterated it is sticking to that timeline.

Telkom is not solely relying on Hedberg's expertise, as Nelson says it is pursuing a possible tie-up with another operator in Nigeria to boost the company's performance.

Telkom acquired the remaining 25% shareholding in Multi-Links in January for $130 million (about R1.224 billion), after buying 75% of the company in May 2007 for $280 million (about R1.96 billion).

Share