UPDATE 1-South Africa's Vodacom to sell some operations in five African markets

Published 21/06/2019, 10:30
Updated 21/06/2019, 10:40
UPDATE 1-South Africa's Vodacom to sell some operations in five African markets

(Adds more details)
June 21 (Reuters) - South African mobile phone operator
Vodacom Group Ltd VODJ.J said on Friday it had entered into
agreements to sell some of its Business Africa operations, which
offer business-managed services to enterprises.
Vodacom, which is majority-owned by Vodafone Group Plc
VOD.L , said it had agreed to sell the Angolan assets of its
Business Africa unit to Internet Technologies Angola.
It has also agreed to sell Business Africa's operations in
Nigeria, Zambia and Ivory Coast to Synergy Communications and to
Vodafone Ghana in Ghana, it said.
Through Vodacom Business Africa, the company said it offers
business-managed services to enterprises in 50 countries.
"In each of the five Vodacom Business Africa markets, the
respective partners will acquire all of the operations and
assets held by Vodacom," the company said in a statement, adding
that the financial terms were confidential.
Vodacom said it would no longer directly service global
enterprise customers in the five markets covered in the
agreements, but would continue to operate as a
telecommunications network provider through local service
provider agreements.
"The transactions support Vodacom Group's enterprise
strategy in Africa, which has been refocused to grow and
strengthen its core business," the company said.
A Vodacom spokeswoman could not immediately provide more
details on the reasoning behind the disposals of the operations.
In the year ended March 31, enterprise service revenue
contributed 23% to group service revenue, with 77% of the
revenue coming from consumer service.
Vodacom said the agreements were subject to regulatory
approvals in all the relevant markets.

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