MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
On The Money - In Brief
- The UK telco BT has announced plans to sell off a 30% stake in its South African operations to comply with Black Economic Empowerment (BEE) legislation. The stake is being acquired by Sekunjalo Investments, a black-controlled company, for ZAR27 million (USD2.8 million). BT Group, believes its broad-based black economic empowerment deal with Sekunjalo Investments will give it access to multinational clients.
- Zain plans to make four to five acquisitions worth up to $4 billion before 2010 with the global credit crisis depressing asset prices for telecom firms, its chief executive said.
- South Africa’s hi-tech company Altech said it would fight MTN Takeover of Verizon in South Africa. Objections to MTN's planned R1,4bn takeover of Verizon SA will be heard by the Competition Tribunal on Friday as a precursor to the main event. The proposed deal has already been unconditionally approved by the Competition Commission despite objections from several industry players. Now the tribunal will hear arguments from Altech, which wants to intervene to block the move.
- In Kenya, mobile phone operator, Safaricom has said that it will soon announce new value addition features on its money transfer service, M-Pesa.
- JSE-listed African Cellular Towers (ACTowers) has informed shareholders it expects earnings and headline earnings per share, for the six months ended 31 August, to increase by between 25% and 35% over that of the previous corresponding period.