Former Cell C CEO Jeffery Hedberg is now based in Nigeria, working to turn around Telkom's problem child, Multi-Links.
Telkom announced in July last year that it had appointed Hedberg to boost its Nigerian mobile operator. However, he was prevented from taking up the reins at the business, because of an employment agreement with Cell C majority shareholder Oger Telecom.
Hedberg headed off to Nigeria in February and has begun the hard task of turning the business around. Telkom is currently in a closed period and cannot detail Hedberg's strategy for the business.
However, the operator hopes Hedberg will work similar magic for Multi-Links as he did with Cell C.
Hedberg will have his work cut out for him over the coming two years, considering Telkom's ambitious targets for Multi-Links. Telkom's last set of annual results said it wants the Nigerian company to be EBITDA positive by 2010/11 and become cash flow positive by 2011/12.
Before Hedberg was released from his Cell C contract, MD of Telkom International Thami Msimango was on the ground with a team to begin its turnaround. Telkom is also looking at 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 last year, for $130 million (about R1.224 billion), after buying 75% of the company in May 2007 for $280 million (about R1.96 billion).
Telkom has a lot riding on a successful operation in Nigeria, since it has pitted Multi-Links as one of its financial fillers for the loss of its Vodacom revenue.
Share
