The situation with Vodacom Congo is confusing, silly, and halting progress.
Simply, Vodacom Congo is owned by two groups, Vodacom Group Ltd (51%) and Congo Wireless Network (49%).
Vodacom Group is owned 65% by Vodafone, the leader in mobile banking and transfer. Vodafone operates M-Pesa, the currency for the unbanked in Africa.
Here's the catch. Congo Wireless Network, the minority owner of Vodacom Congo, would not allow Vodacom Group to invest about $484 million to upgrade Vodacom Congo.
What!? I think Vodacom Group should just buy out Congo Wireless Network. Then, Vodacom Congo can keep up Vodacom in other African countries.
Vodacom Group Ltd. (VOD), the phone company with most South African customers, is close to resolving a dispute that has blocked investment in its Democratic Republic of Congo unit for the last two years.
“We’re making good progress and getting closer to a solution,” Johan Dennelind, Vodacom’s head of international operations, said yesterday in an interview at the group’s Johannesburg headquarters. Vodacom is 65 percent owned by Newbury, England-based Vodafone Group Plc. (VOD)
Vodacom has been at odds with local minority partner, Congolese Wireless Network SPRL, since at least early 2010, following a plan to inject $484 million into the business, Vodacom Congo SPRL. CWN has said the recapitalization would dilute its 49 percent share because its shareholders don’t have the money to support their half. Vodacom said last year it had agreed with CWN to “explore options” for the unit after disagreements over the funding and operational structure.
Vodacom Congo had 4.8 million subscribers at the end of September, Vodacom said on Nov. 7. It is the third-largest operator in the country, which has 65 million people and a mobile penetration rate of 17 percent, according to the U.S. Central Intelligence Agency’s World Factbook.
“We’re having constructive discussions with our partners on the Vodacom Congo board,” said Dennelind, adding that Alieu Conteh, the founder and chairman of CWN, was still on the unit’s board. Dennelind said the parties are “nearing completion” and hope to agree soon.
Simply, Vodacom Congo is owned by two groups, Vodacom Group Ltd (51%) and Congo Wireless Network (49%).
Vodacom Group is owned 65% by Vodafone, the leader in mobile banking and transfer. Vodafone operates M-Pesa, the currency for the unbanked in Africa.
Here's the catch. Congo Wireless Network, the minority owner of Vodacom Congo, would not allow Vodacom Group to invest about $484 million to upgrade Vodacom Congo.
What!? I think Vodacom Group should just buy out Congo Wireless Network. Then, Vodacom Congo can keep up Vodacom in other African countries.
Vodacom Group Ltd. (VOD), the phone company with most South African customers, is close to resolving a dispute that has blocked investment in its Democratic Republic of Congo unit for the last two years.
“We’re making good progress and getting closer to a solution,” Johan Dennelind, Vodacom’s head of international operations, said yesterday in an interview at the group’s Johannesburg headquarters. Vodacom is 65 percent owned by Newbury, England-based Vodafone Group Plc. (VOD)
Vodacom has been at odds with local minority partner, Congolese Wireless Network SPRL, since at least early 2010, following a plan to inject $484 million into the business, Vodacom Congo SPRL. CWN has said the recapitalization would dilute its 49 percent share because its shareholders don’t have the money to support their half. Vodacom said last year it had agreed with CWN to “explore options” for the unit after disagreements over the funding and operational structure.
Vodacom Congo had 4.8 million subscribers at the end of September, Vodacom said on Nov. 7. It is the third-largest operator in the country, which has 65 million people and a mobile penetration rate of 17 percent, according to the U.S. Central Intelligence Agency’s World Factbook.
“We’re having constructive discussions with our partners on the Vodacom Congo board,” said Dennelind, adding that Alieu Conteh, the founder and chairman of CWN, was still on the unit’s board. Dennelind said the parties are “nearing completion” and hope to agree soon.
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