South African mobile operator Vodacom no longer intends to exit operations in the Democratic Republic of Congo, the company’s incoming CEO told reporters at a media event today.
Shameel Joosub, who is set to replace current CEO Pieter Uys next April,…
South African mobile operator Vodacom no longer intends to exit operations in the Democratic Republic of Congo, the company’s incoming CEO told reporters at a media event today.
Shameel Joosub, who is set to replace current CEO Pieter Uys next April, said the company is working with its local partner, Congolese Wireless Network, to resolve a years-long dispute over funding and operational structure of the unit, reported Reuters. Joosub said the company is confident an amicable resolution can be reached.
Vodacom mandated Rothschild in 2010 to advise it on the sale of its 51% stake in Vodacom DRC. However an auction set to take place on 3 June this year was abandoned after a Democratic Republic of Congo court ordered Vodacom to pay US$21m in consultant fees to Namemco Energy, or face the sale of its shares in the unit by 3 June. The South African telco previously hired Namemco to settle the dispute with Congolese Wireless Network, which owns the remaining 49% stake in the unit.
The Congolose Supreme Court suspended the sale in June – a dispute which is also ongoing.
