Change of guard

Mohamed Shameel Joosub became CEO of Vodacom Group effective September 1, inheriting a cellular operation that remains a market leader in South Africa, but a second-tier pan-regional African player, with presence in four other sub-Saharan markets. Digital content, enterprise services, and the leveraging of its relationship with parent group Vodafone appear to be Joosub’s early strategic positions for the cellcoS. Joosub

Shameel Joosub is an experienced Vodacom executive so it will be interesting to see whether he is able to inject some fresh dynamics into the cellco

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Airtel linked to acquisition in South Africa

Bharti Airtel is looking to acquire an operator in South Africa, with the market’s smallest operators Cell C and 8ta in the frame, Business Day reported.

The deal would enable the India-based international group to expand its presence in Africa, following its acquisition of a number of assets from Zain in 2010.

It also follows an aborted 2009 attempt by Airtel to acquire MTN, the second biggest operator in South Africa, which was attributed on at least one occasion to demands made by the South African government.

According to the report, fixed line incumbent Telkom South Africa said it has not been approached about the sale of 8ta, its recently-created mobile business.

Telkom has previously identified 8ta as being central to its plan to defend erosion of its core activities through the provision of converged services.

It was noted that with 8ta currently still in the start-up phase, it requires significant investment, potentially making Airtel a strong partner.

Independent operator Cell C is more established, in contrast, but this would also make it a more costly acquisition target.

Former Wataniya Telecom Kuwait CEO to lead Zain Group

Zain Group today announced the appointment of Scott Gegenheimer as its new chief executive officer effective immediately. Gegenheimer replaces Nabeel Bin Salamah, who announced towards the end of October this year that he would not be renewing his contract.DSC_0660 (681x1024)

Gegenheimer has a 20-year plus working history in the telecom sector, having spent 10 years in various senior management positions at Wataniya Telecom, culminating in his appointment as CEO of Wataniya Telecom Kuwait in 2008; a position he remained in until June 2012. Gegenheimer has also spent time working for technology heavyweights including Cisco Systems and Motorola, and also had a stint working in the financial services industry in the US.

Regarding his appointment, Gegenheimer said: “I am looking forward to the opportunity to work within this great organization, and to make my contribution to its progress.”

Coming full circle

In September, Zain Group announced it had entered into a Partner Market agreement with Vodafone; nearly six years after MTC (Zain’s former name) ended its co-branding arrangement with the UK operator in Kuwait and Bahrain. Much has changed in the cellco space in the Gulf since 2006, and the latest deal between Zain and Vodafone begs the question: Have the changes been fundamental or cosmetic?Pic 1 - MTC Vodafone

The MTC Vodafone co-branding deal extended to Kuwait and Bahrain, and at the time increased the visibility of the Gulf operator significantly

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Bharti Infratel prepares for US$830 million IPO

Bharti has confirmed pricing for the much-anticipated IPO of its towers arm, indicating that it is looking to raise as much as US$830 million.

Shares in Bharti Infratel are to be priced at INR210 (US$3.86) to INR240, reports Reuters; 188.9 million shares, or 10 per cent of the company, is up for sale, making it India’s largest flotation for two years.

At the top end of the range, the sale will net the firm about INR45.3 billion.

Bharti Infratel will sell about 146 million new shares, while four of its stockholders, including arms of Singapore state investor Temasek and Goldman Sachs, are selling 42.7 million shares, according to a regulatory filing.

However, Bharti Airtel, India’s largest mobile operator which owns about 86 per cent of Bharti Infratel, will not sell any shares.

Bharti Infratel owns 33,660 mobile phone towers and also a 42 per cent stake in Indus Towers, a JV with other Indian operators considered to be the largest towers company in the world.

The IPO will open on December 10 for cornerstone investors and a day later for the public, closing on December 14.

According to Reuters, Bharti Infratel shares will be sold at a discount to global peers, with an enterprise value over EBITDA ratio of 9-10.5x based on the indicated range. This compares to 17.8x at American Tower, 17.2x at Crown Castle International, and 17.6x at Indonesia’s PT Tower Bersama Infrastructure.