Vodacom’s strategic review of its assets in the Democratic Republic of Congo has hit a stumbling block following a court filing by its JV partner in the country.
A spokesperson for Vodacom, the African operator majority owned by British Vodafone,…
Vodacom’s strategic review of its assets in the Democratic Republic of Congo has hit a stumbling block following a court filing by its JV partner in the country.
A spokesperson for Vodacom, the African operator majority owned by British Vodafone, confirmed that Congolese Wireless Network (CWN) has turned to the court in relation to the ongoing review process conducted by Rothschild.
CWN is Vodacom’s joint venture partner in the DCR, with Vodacom owning 51% in the unit, and 49% held by CWN.
One of the possible outcomes of the court filing could be that Vodacom will be blocked from selling its stake in the DCR joint venture. But the Vodacom spokesperson also noted that the review process would not necessarily result in a sale decision. Rather, he said, Vodacom was exploring its options for the unit, and a divestment was only one of the possible outcomes.
A report by news agency Reuters pointed out that CWN and Vodacom had previously had disputes in relation to fees from the JV.
