JOHANNESBURG Giant South African fixed-phone operator Telkom is said to be eyeing a 60 percent share of Zimbabwes sole operator, TelOne, it emerged last week. TelOne spokesperson Collin Wilbesi last week told South African media that Zimbabwe state-run company was negotiating with a foreign partner, but declined to give details.
We are currently engaged in discussions with some party that we cannot disclose at the moment because of the non-disclosure agreement that we have signed with them. Our negotiations are at a very advanced stage such that we would not wish to jeopardise them by divulging details in the press, Wilbesi said.
South African government sources said Telkom Africas largest fixed-phone company with operations in Nigeria, Kenya and Namibia has already conducted due diligence on TelOne.
TelOne managing director Hampton Mhlanga has said his company is $200 000 in debt, and at one point had to block calls from its customers to mobile operators to manage a growing interconnect debt.
Sources said the Zimbabwe government is however reluctant to give Telkom a controlling stake in the loss-making parastatal, preferring that the operator comes in as a technical partner.
Zimbabwes controversial indigenisation laws also mean Telkom cannot get more than 49 percent of TelOne. However, Indegenisation Minister Saviour Kasukuwere has said the state was open to discussions on the controversial empowerment Bill.
A group of 60 South African businessmen who attended Fridays signing ceremony in Harare of an investment protection agreement between Zimbabwe and South Africa also held talks with the government on investment opportunities.
Post published in: Economy