South African financial firm Old Mutual Asset Managers and Indian conglomerate Tata Africa Holdings have been named as two of the three parties interested in buying a controlling stake in the second national operator (SNO).
The Department of Communications says communications minister Ivy Matsepe-Casaburri has named two of the three companies that have expressed their interest in terms of her September announcement calling for applications.
The third party has asked for its name not to be released yet.
Matsepe-Casaburri awarded the SNO a licence in August in terms of which a new company, Sepco, will be incorporated and hold 51% of the equity share capital of the SNO.
The minister has asked that the Independent Communications Authority of SA undertake the role of approving the applicants' submissions, including the shareholder agreement, business plan and thereafter the licensing of the SNO entity.
A new financial investor, with a 51% shareholding, will control Sepco. WIP Investments Nine, trading as CommuniTel, and Two Consortium will each hold 25% of Sepco.
Transtel and Esitel will together hold 30% of the equity share capital of the SNO. Nexus will hold 19% of the equity share capital of the SNO.
The integration of the SNO company will be the responsibility of the SNO company shareholders.
Tata interest
Tata Africa is the local subsidiary of the Indian conglomerate that has interests in a number of industries and services ranging from telecommunications to vehicle manufacturing, and hotels to financial services. Communications and information systems are one of the seven key fields of the group's business interests.
In February 2001, Tata Africa entered into a joint venture with former communications minister Jay Naidoo's Jay & Jayandra (J&J) company. Called Consilience Technologies, it had the stated aim of becoming a dominant ICT player.
J&J was cited in a Sunday newspaper last weekend as being one of the parties considering the purchase of Thintana's 15.1% stake in Telkom.
Old Mutual Asset Managers' expression of interest is believed to be linked to its support for one of the black empowerment parties already in the SNO consortium.
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