Telkom is in talks with Zimbabwe's sole fixed-line operator to provide it with management services, but not to buy a stake in the company.
TelOne has reportedly been in financial difficulty for some time, and news has emerged that the state-owned operator is up for sale. Zimbabwean newspaper ZimOnline reported in November last year that a 60% stake in the company is for sale.
Both Telkom and MTN have been named as potential suitors for the company, but Telkom has denied vying for a share, and MTN is not commenting on whether it is bidding.
Charlotte Mokoena, CEO of Telkom Management Services, says the company is not bidding for a stake in either TelOne, or government-owned mobile NetOne, which is also in financial difficulty.
“However, the company has been discussing and is close to concluding an agreement, to provide management services, such as professional engineering and other functional services, to assist TelOne to prepare and build for the future,” says Mokoena.
The Zimbabwean Online reports that TelOne is in talks with a foreign entity with a view to selling a stake. The telecoms company is $200 000 in debt, the online publication reports. NetOne was established as the first Zimbabwean cellular operator in 1996.
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