Vodacom and MTN are once again reported to be eyeing the same African stake, with Angola's largest cellphone operator Unitel now apparently in their sights.
Citing "four people familiar with the matter" Bloomberg reported on Friday evening that the two South African mobile leaders were looking into a purchase of Brazilian telecoms group Oi's African businesses - specifically Unitel.
Unitel falls under Portugal Telecom subsidiary Africatel, in which Oi has 75% ownership that it recently said it wanted to sell off. According to Financial Times, Rio de Janeiro-based Oi wants to sell all of its assets in Africa in light of "a bitter fight for its home market".
Brazil's fourth biggest wireless carrier, Oi's stake in Unitel is 25% and is worth more than $2 billion, according to Reuters.
A Vodacom spokesperson this morning said the company continuously reviews investment opportunities, "but I can't comment on any particular country or company".
MTN Group's executive for investor relations, Nik Kershaw, says the company continues to look for value-enhancing opportunities, including mergers and acquisitions, as part of its long-term growth strategy. "However, we don't comment on market speculation."
Ugandan opportunity
Vodacom, SA's leading mobile operator with 32.5 million subscribers, has operations in SA, Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho.
MTN, SA's second biggest mobile operator with 26.7 million subscribers - and Africa's biggest - has operations in 22 countries across Africa, the Middle East and Europe. Its African footprint encompasses 17 of these - including SA, Botswana, Namibia, Uganda, Kenya, Nigeria, Ghana, Zambia, Cameroon, Congo Brazzaville, Rwanda, Sudan, Benin, C^ote d'Ivoire, Liberia, Guinea Conakry and Guinea-Bissau.
ITWeb reported in March that SA's mobile duopoly seemed set to go head-to-head in a duel for French operator Orange's Ugandan business, Orange Telecom.
According to MTN, its Ugandan business recorded 8.8 million subscribers at the end of last year. MTN Uganda is the country's leading mobile operator, while MTN Group is the biggest mobile operator in Africa, second in SA.
In May, Vodacom CEO Shameel Joosub said the operator had "extended its growth horizons", focusing on new services and opportunities for geographic expansion. The operator plans to increase its African presence significantly over the next two to three years.
While neither operator would comment on the Ugandan opportunity, both said at the time they were looking for growth opportunities.
MTN Group said it would continue to look at suitable opportunities in emerging markets, including in Africa, the Middle East and South East Asia.
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