Cellular operator MTN surprised the market by issuing a cautionary announcement on Friday afternoon, two days before it is due to release interim results.
The company said only that it is "involved in discussions in relation to a potential transaction involving some of the company`s non-South African assets," leaving much room for speculation.
MTN has operations in Cameroon, Nigeria, Rwanda, Swaziland and Uganda, as well as investments in Ghana through Orbicom, its satellite company.
Nigeria is the most closely watched of these as it represents by far the biggest investment for the company outside SA, and the large amount of unhedged, dollar-denominated debt carried by MTN has worried shareholders for some time.
Most analysts have been expecting an announcement with regards to the Nigerian debt. In late October, MTN pledged to "improve our capital structure by reducing our dollar exposure to more acceptable limits" after the government raised the limit for investment from R750 million to R2 billion.
However, some are also keeping a close eye on MTN Cameroon, a wholly owned subsidiary that acquired the mobile arm of that country`s monopoly fixed-line operator. The company claims nearly 50% market share in Cameroon, higher than that of MTN South Africa, but has consistently under-performed in comparison with its fellow MTN operations.
Despite a massive increase in revenue between 2001 and 2002, MTN Cameroon lost R40 million in its last financial year and average revenue per user, at $24, has been described as problematically low.
MTN is in a closed period prior to the release of its results and would not comment on the cautionary. However, the company said it is not related to a previous announcement on negotiations by one of its major unlisted shareholders to sell its stake.
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