It will be another month or two before the company decides whether to shed its stake in Vodacom Congo, says SA's largest cellular operator.
Vodacom has been locked in a dispute with fellow shareholder Congolese Wireless Network (CWN) for more than a year. Vodacom owns 51%of the unit, with the remainder held by CWN.
Vodacom CEO Pieter Uys says it will be about another “month or two” before the company knows which direction to take. The companies have been in arbitration after disagreeing over funding of the joint venture.
Uys explains Vodacom appointed NM Rothschild & Sons to explore options for the Vodacom Congo operation late last year. He says Rothschild is looking for buyers for its stake.
However, CWN recently filed court papers in a bid to block the South African operator from selling its stake in the venture. Uys says the venture is a “big thorn” in its side and Vodacom has stopped funding it, pending a resolution.
Uys adds the deadlock needs to be broken, and if that cannot happen, there will have to be a new shareholder.
Analysts previously cautioned that Vodacom needs to hold onto the asset as it is strategically important for its African expansion plans.
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