Archive for March 25th, 2007

This Day (Lagos)
March 24, 2007
Posted to the web March 24, 2007

Andy Ekugo

South African fixed-line operator Telkom has confirmed that it has bought 75 percent of Multilinks for $280 million to expand further outside its home base. This confirms THISDAY story earlier in the week.

This acquisition has already raised Telkom’s shares to 1.3 per cent higher at 167.99 Rand in the Johannesburg Stock Exchange.

Telkom Chief Executive Papi Molotsane was quoted as saying that “The size and nature of growth of the Nigerian telecoms market, its low teledensity of only 20 per cent and its pent up demand for Internet access demonstrates that there is immense potential for future growth, making this an ideal acquisition.”

Experts say Multi-links has basic technologies that would aid Telkom to achieve success in the deal.

“What would be interesting to see on the mobile side was how Vodacom would get involved. There are lots of potential. It is a great acquisition and the price they (Telkom) paid seems not to be over the top,” noted some South African experts. This, they believe will provide Telkom with good growth opportunities.

Telkom also acquired Africa Online in February for $20.27 million in its quest to expand its market.

Telkom has been trying for several years to break into new markets but in previous attempts, it had to scrap a plan to push into Nigeria through Vodacom.

The change in ownership structure of Multilinks has received [continue reading]