Vodafone seeks African acquisitions

Vodafone Group Plc, the worldÔÇÖs biggest mobile-phone company, may expand in Africa, including through acquisitions, using Vodacom Group Ltd. as its gateway to the continent┬á Vodafone manages Johannesburg-based Vodacom, and will involve itself in AfricaÔÇÖs market consolidation as prices of acquisition targets fall, Pieter Uys, the CEO of the South African company, said in an interview on Tuesday. ┬á Newbury, England-based Vodafone has sought assets in emerging markets, making acquisitions in India, Turkey and Qatar to make up for fallling demand in its main European markets. In November, it bought an additional 15 percent stake in Vodacom from Telkom South Africa Ltd. for 22.5 billion rand, ending a 50-50 partnership and raising its stake to 65 percent. ┬á Now that Vodafone is in control, its size and brand allow it to buy companies in Africa and participate in the consolidation of markets, many of which have too many providers, he said. In the Democratic Republic of Congo, for example, there are as many as nine operators, he said. ┬á ÔÇ£You cannot have a country with nine operators,ÔÇØ Uys said. ÔÇ£ItÔÇÖs not sustainable.ÔÇØ ┬á Uys said the new Vodafone control is good for Vodacom. ┬á ÔÇ£If you asked me 12 months ago I would have been more hesitant,ÔÇØ Uys said of his eagerness to be CEO of a listed subsidiary of Vodafone. ÔÇ£But I really like the management that is there now.ÔÇØ ┬á ÔÇ£If you look at the world there arenÔÇÖt many growth opportunities around; Africa is one of them,ÔÇØ Uys said. ÔÇ£All markets in Africa offer potential for consolidation.ÔÇØ Vodafone ÔÇ£has committed to use usÔÇØ to enlarge its sub-Saharan business and ÔÇ£support usÔÇØ on potential acquisitions, he said. ┬á Discussions between the two companies on procurement and co-branding in new markets are underway, and Vodacom would ÔÇ£considerÔÇØ re-branding itself, he said. ÔÇ£If it makes sense, yes we will do it.ÔÇØ ┬á