Vodacom Group, a South African mobile communications firm, is selling its subsidiaries in five sub-Saharan Africa countries in three separate share purchase agreements.
In a statement released on Friday, Vodacom said the Business Africa operations include those in Nigeria, Zambia, Angola, Ghana, and Cote d’Ivoire.
“In each of the five Vodacom Business Africa markets, the respective partners will acquire all of the operations and assets held by Vodacom. The various entities are in the process of concluding the required agreements, the financial terms of which are confidential.”
Shameel Joosub, CEO of Vodacom Group, says, “Vodacom has a clear vision for strengthening our position as a leading pan-African business and will work with local service providers to grow in these markets. Crucially, Vodacom is not exiting any of the territories related to this transaction and remains focused on continuing to deliver exceptional service to our global and multinational clients in these markets through long-term commercial agreements.”
“To support the sustainable growth of pan African digital economies and building connected societies, Vodacom will, via local service providers, continue to service clients in each market. We seek to leverage our collective strengths to meet the changing requirements of clients across each of these markets.”
Business Insider SSA understands that Synergy Communications will buy subsidiaries in Nigeria, Zambia, and Cote d’Ivoire while Internet Technologies Angola (ITA) will acquire Vodacom in Angola and Vodafone Ghana will takeover Ghana subsidiary.
The company said it went through a robust and lengthy process with numerous interested applicants to find the right partners to reposition its business on the continent. The transactions are subject to various regulatory and statutory body approvals.
Since the beginning of 2019, African businesses are re-positioning and re-strategising core focus on the continent. In January, Business Insider SSA by Pulse exclusively reports exit of Careers24, online job portal in Nigeria, Careers24 Nigeria was the unit of Media24, a subsidiary of Naspers, South African-based multinational internet and media group.
Also, in March 2019, Jiji, online classifieds marketplace in Nigeria acquired OLX businesses in Ghana, Kenya, Tanzania, and Uganda. In April, Africa’s richest man, Aliko Dangote, also disposed its flour business to Olam International at a value worth $361.11 million.
Business Insider SSA By Pulse also reports that Lafarge Africa Plc recently opted to sell its South African operations to Caricement B.V, for $317 million to pay-off a related-party loan, amounting to $293 million.
In Nigeria, Billionaire Femi Otedola also completed the sale of Forte Oil to Ignite Investment.