Africa's largest cellular operator, MTN, is taking part in Vodacom's formal process to evaluate what to do with its Democratic Republic of Congo (DRC) operation.
Vodacom has been embroiled in a shareholder dispute with its partner in the operation, Congolese Wireless Network (CWN), for some time.
At the end of 2010, the mobile operator hired NM Rothschild to explore options for the DRC business, which may include Vodacom selling the stake.
JSE-listed Vodacom owns 51% of Vodacom DRC, with CWN holding the remainder. The company officially made its commercial debut in 2002.
Rich Mkhondo, MTN group spokesman, this morning said “we are aware that Vodacom has engaged in a process to evaluate various alternatives in relation to its investment in the DRC”.
Mkhondo says, together with other potential interested parties, “MTN has been invited to be part of such a process”.
The operator, the largest in Africa, says the opportunity is “in line with our strategy of becoming the leading communications provider in emerging markets” and it is “participating in the formalised process”. However, MTN cannot comment further, Mkhondo adds.
Last October, Reuters reported CWN had filed court papers to block Vodacom from selling its majority stake in the unit.
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