Vodafone CEO: Awaits Results Of Telkom, Vodacom Operations Review"
LONDON -(Dow Jones)- Vodafone Group Chief Executive Arun Sarin Tuesday said he will await the outcome of South Africa's Telkom's ongoing strategic review before deciding on whether to increase Vodafone's share in its African joint-venture Vodacom.
Speaking to journalists following the mobile operator's fiscal year results Tuesday, Sarin responded with a wait-and-see response to analyst speculation that Vodafone may be looking to buy Telkom out of the Vodacom joint-venture.
"We took our interest from 35% to 50% over the last 18 months and South Africa continues to perform very well," said Sarin.
"Telkom is conducting a strategic review and we will await the outcome," he added.
In a research note issued last week, Citigroup analyst Terence Sinclair said he expects Vodafone to extend its presence in emerging markets by acquiring the remaining 50% of Vodacom for GBP5.2 billion, some time in the not so distant future.
Sarin said that Vodafone would be happy to stay in the same 50:50 shareholding agreement if Telkom decided to keep hold of its assets.
"My view is that we are happy shareholders in 50:50 Vodacom," he said.
Vodafone said in its fiscal-year results Tuesday that it had seen strong organic growth in the Middle-East, Africa and Asia. South Africa saw a 21.9% increase in local currency organic service revenue growth, with data usage growing as it rolled out its third-generation, or 3G, network that allows video calls and mobile television services.
Company Web site: http://www.vodafone.com
-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 29th May 2007