|
Telkom SA Limited - Vodacom And Econet Wireless Nigeria Sign Management
Agreement
Telkom SA Limited
(Registration Number 1991/005476/06)
ISIN ZAE000044897
JSE and NYSE Share Code TKG
("Telkom")
VODACOM AND ECONET WIRELESS NIGERIA SIGN MANAGEMENT AGREEMENT
Vodacom Group (Proprietary) Limited ("Vodacom" or "Vodacom Group") (unlisted),
South Africa"s leading mobile communications group, in which Telkom has a 50.0%
holding, announced today the signing and implementing of a 5-year Management
Agreement.
The Agreement supersedes an interim agreement that has been in effect since
October 2003. In return for a management fee, a very senior team, led by Mr
Willem Swart, newly appointed as chief executive officer at Econet Wireless
Nigeria, have started work in Nigeria today. Mr Swart was formerly the managing
director of Vodacom Congo.
Econet Wireless Nigeria Limited will start trading under the Vodacom brand with
immediate effect. In terms of the Agreement the Vodacom Group will also provide
additional support in respect of procurement, network design and roll-out,
products and services, marketing and other group services.
The signing of the Agreement follows extensive due diligence by Vodacom over a 9
month period. It represents a key step in the process of Vodacom"s proposed
equity investment into the business of Econet Wireless Nigeria Limited, in terms
of which Vodacom will take a controlling stake in this business.
Vodacom Deputy Group CEO, Mr Andrew Mthembu, said the proposed equity investment
process will receive a huge boost from this Agreement. The transaction to
effect the equity investment still requires finalisation of the commercial terms
and the sanction of the courts of Nigeria as well as the Nigerian Communications
Commission and the Nigerian Securities and Exchange Commission. Mthembu stated
that the closure of the equity investment process will take time, however it is
likely to be completed within a 6-18 months timeframe.
Econet Chairman, Mr Oba Otudeko, says the Agreement will enable Econet Wireless
Nigeria to draw from the goodwill and expertise of Vodacom as the leading mobile
operator on the continent and to boost the Nigerian network operations as well
as strengthen it to compete more aggressively.
Vodacom is particularly proud to be making this announcement on the 10th
anniversary of the launch of its commercial service on 1 April 1994. Mthembu
said that this Agreement marks the start of the second chapter in the growth of
the Vodacom Group.
Vodacom Group (Pty) Ltd incorporates the leading mobile network operators in
South Africa, Tanzania, Democratic Republic of the Congo and Lesotho. It has
also recently launched service in Mozambique and with over 11 million customers
is the largest mobile operator on the African continent. Econet Wireless
Nigeria Limited is the second largest mobile operator in Nigeria with over 1
million customers.
Johannesburg
1 April 2004
Date: 01/04/2004 03:35:02 PM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
