On The Money - In Brief
- MGX says it will continue to implement the recovery plan drawn up by former advisor FRM Strategies, including selling off various subsidiaries. The embattled group was hit this week by the news that FRM Strategies, appointed at the end of last year to return MGX to profitability, had chosen not to renew its contract. FRM Strategies principal Peter Flack also resigned as interim CEO of MGX after failing to reach agreement with MGX’s bankers on a plan to restructure debt. Flack was insistent that MGX could survive only if between R130 million and R150 million of its debt, which stands at almost R450 million, were converted to equity.
- Research by accounting and business advisory KPMG has shown that more than 60% of all South African companies have suffered some form of computer theft - earning the country the dubious distinction of being the world’s leading PC theft centre.According to Anton Leal, MD of protection specialists, Asset Dynamics, on a pro-rata basis more computers are stolen in SA than anywhere else in the world.
- Egypt’s state-owned fixed line monopoly Telecom Egypt is looking to acquire a 16 percent stake in Vodafone Egypt, from Vodafone International, reported Al-Ahram. The company’s shares will be listed on the Cairo and Alexandria Stock Exchange (CASE), at a price of LE50/share, following the deal’s close.
- Shares in regional cellular operator Orascom Telecom shed almost five percent in early trade on Sunday after the firm denied rumours of a merger with Kuwait’s Mobile Telecommunications Co.
- Netherlands-based Mobile Systems International (MSI) Cellular will soon secure substantial shares in KenCell Communications Kenya Limited.