TELKOM LESOTHO TO BE SOLD OFF BY ESKOM - ECONET HAS FIRST OPTION TO BUY

Mergers, Acquisitions and Financial Results

Eskom has announced that it will sell its interest in Mountain Communications, the consortium (with Econet) that owns Telkom Lesotho. Econet has a first option to buy out its consortium partner and the timetable for the sale will depend on how long it takes to negotiate an agreed price. If a price cannot be agreed between the parties, then the consortium’s conditions include provision for a valuation to be sought.

Eskom has the majority of the shares in the consortium and has made a board level strategic decision to focus on its power business. Its South African fibre assets will be folded into the SNO when it is launched.

So why would Econet Wireless International buy a fixed line operation? Well obviously to secure its interest in the company’s mobile subsidiary. But to the subsidiary’s CEO Elvis Gwanzura:”Econet sees itself as being in the communications area: mobile, fixed, internet and long-distance satellite.” Its announced share