British telco Vodafone and Hong Kong-based Hutchison Telecom are reportedly seeking buyers for their JV, Vodafone Hutchison Australia (VHA), the country’s third-largest mobile operator. Citing industry sources, local newspaper The Australian explains…
British telco Vodafone and Hong Kong-based Hutchison Telecom are reportedly seeking buyers for their JV, Vodafone Hutchison Australia (VHA), the country’s third-largest mobile operator.
Citing industry sources, local newspaper The Australian explains that some sales documents have already started circulating among potential buyers to test the market reaction. Companies that have reportedly seen those documents include QTel, Etisalat, Korea Telecom and NTT Docomo.
But in an email to TelecomFinance, Vodafone, which owns 50% of VHA, said that it is “fully committed to its operations in Australia”.
Hutchison Telecom, which controls the other half of the JV, could not be reached for comment before the press deadline. But according to The Australian, managing director Canning Fok said that Hutchison would continue to provide financial support for VHA.
VHA has been struggling with financial difficulties, mainly linked to network quality problems, for several months.
In its financial results for the quarter up to 31 December 2011, Vodafone said that “despite improvements in the network and customer service in Australia, customer sentiment and a highly competitive market continued to adversely impact service revenue growth, which declined 11.1% in the quarter.”
In Australia’s mobile market, which has a penetration of over 130%, VHA competes with two larger rivals, incumbent Telstra and Optus.
A potential deal would mark Vodafone’s first sale this year after a busy 2011.
Last year, it offloaded several minority investments in foreign companies – including China Mobile, French mobile operator SFR and Poland’s Polkomtel – following pressure to return money to investors.
