South African cellular service provider Vodacom has denied rumours that its decision to withdraw from talks with Nigerian operator V-Mobile was prompted by instructions from its 50% shareholder Vodafone.
After Vodacom CEO Alan Knott-Craig`s announcement that the group ceased discussions to buy a controlling interest in V-Mobile, it was speculated that Vodafone may have chosen to enter the Nigerian market directly.
However, a Vodacom spokesperson denies this is the case and says V-Mobile`s asking price was simply considered too high. The spokesperson adds that Vodacom would continue to pursue any viable avenues to enter the West African country and V-Mobile remains its most attractive option.
Commenting on how the withdrawal from the talks would influence the company`s African strategy and what its short-term plans are for the continent, the spokesperson says: "While Vodacom management is waiting for direction from its shareholders, Telkom and Vodafone, it is continuing to consider alternative acquisitions on the African continent."
Vodacom also quashed rumours that the legal complications surrounding its earlier deal with V-Mobile, trading as Econet Wireless Nigeria, influenced the withdrawal.
"Should the opportunity arise to purchase a controlling interest in V-Mobile, at a price acceptable to the shareholders of Vodacom, then such an acquisition will be pursued," the company says in a statement.
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