A consortium of prominent black businessmen is eyeing investments in the telecoms sector, including a possible stake in Vodacom.
Business Report last week quoted an unnamed source saying the consortium, referred to as the Mowana Investments and 5 Mile consortium, was bidding for up to 10% of Vodacom and was prepared to pay between R8 billion and R10 billion.
However, while Benjamin Mophatlane, deputy CEO of Business Connexion, confirms the formation of a consortium, he says the leaked information is not entirely accurate.
Vodacom is not the only investment being considered and the consortium is not involved in formal talks with Vodafone. Neither has a bidding process begun, he says.
"I am part of a broader consortium with an interest in the telecoms sector," he says. "Certainly one asset being looked at is Vodacom. Vodafone has said it is considering selling an empowerment stake in the company."
Vodafone`s shareholding in Vodacom increased to 50% earlier this year after the UK cellular network operator acquired VenFin`s 15% Vodacom stake. Local fixed-line operator Telkom holds the remaining 50%.
Vodafone has been reported as saying it is considering selling part of its stake to an empowerment entity.
However, Mophatlane says the consortium is not in talks with Vodafone. "I assume there will be some bidding process, and when there is, we will look at making a bid," he adds.
"It may happen, and it may end up not happening."
According to the Business Report article, the consortium consists of 27 black-owned investment companies.
The article lists former government officials, ICT industry players and other prominent businessmen reportedly involved in the consortium.
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