Vivendi Named As Possible Bidder for Zain's African Networks

Following reports last week that Middle-East operator, Zain was unexpectedly looking at selling its African operations to an unnamed French company, Vivendi has emerged as the suspected bidder. The Nigerian newspaper, Business Day said that Vivendi is the bidder, without citing sources.

Zain is waiting for reply from the French company this week and if the deal isn't settled Zain will study bids made by other companies, the newspaper added. The deal is reported to be worth around US$12 billion, although some sources suggest that this could be an all-share based transaction, with Zain taking 20 percent of Vivendi, in exchange for 10 percent of Zain Africa.

Vivendi currently owns a 56% stake in French mobile network, SFR - with Vodafone holding the remainder. The joint shareholding in SFR will raise speculation that Vodafone is involved in the talks through its South African Vodacom subsidiary.

SFR also offers mobile services on the African island of Réunion through SRR (Société Réunionnaise du Radiotéléphone) although the company is branded as SFR Réunion. Vivendi is also a 53% shareholder in Morocco's Maroc Telecom.

No reason was given for why Zain is looking to sell the African division - which is largely made up of the Celtel International subsidiary it brought in 2005 for US$3.4 billion. None fo the companies are willing to comment on the "market rumours".

On the web: Business Day

Posted to the site on 14th June 2009