South African mobile operators Vodacom and MTN have reportedly expressed interest in acquiring Madagascar’s smallest carrier Telecom Malagasy (Telma).
Two people familiar with the matter told Bloomberg that the potential buyers are looking at Telma as…
South African mobile operators Vodacom and MTN have reportedly expressed interest in acquiring Madagascar’s smallest carrier Telecom Malagasy (Telma).
Two people familiar with the matter told Bloomberg that the potential buyers are looking at Telma as a way to diversify sources of revenue.
Rumours that Telma is up for sale first emerged in February.
Telma, which is partly owned by Hong Kong’s holding company Distacom, is reportedly valued at approximately US$500m. Its main competitors are larger rivals France’s Orange and India’s Airtel.
In late May, Vodacom CEO Shameel Joosub was quoted saying that his company was looking to enter three new African nations within the next two years.
More specifically, the company is seeking to acquire local operators in countries with a population of more than 10 million, high gross domestic product growth, low mobile penetration and stable political situation, he said.
Joosub reportedly cited Ethiopia as an example but declined to comment on the Malagasy market at the time. Madagascar has a population of 22 million and a mobile penetration rate of around 25%.
In an emailed statement today, a spokesperson for the Vodafone-owned telco said the company explores investment opportunities on a regular basis but declined to comment on any specific companies or countries.
MTN and Telma could not be reached for comment before the press deadline.
Vodacom and MTN, respectively number one and two in South Africa, are also competing against each other to buy domestic fixed-line operator Neotel, according to local reports a few weeks ago.