Share

NTT's African unit said to attract interest from MTN, Vodacom

Johannesburg - Japanese telecommunications company, Nippon Telegraph & Telephone (NTT) has attracted competing interest from MTN [JSE:MTN] and Vodacom [JSE:VOD] for the African operations the former telecoms monopoly acquired with the takeover of Dimension Data, according to people familiar with the matter.

Didata’s management is also considering buying back the African business and relisting its shares, the people said, asking not to be identified because the matter hasn’t been made public.

The main prize is Didata’s Internet Solutions unit as the companies seek to tap growing demand for web-based services. MTN is weighing an offer of as much as $600m to get Internet Solutions, the people said.

The structure of a deal hasn’t yet been decided as many options are still being discussed, including a potential partnership agreement.

Tokyo-based NTT, the owner of Japan’s biggest mobile-phone company, is open to approaches from interested buyers for the African business, other people said in June.

Africa’s largest wireless carriers are seeking to expand into internet services to boost growth in their South African home market where demand for data is increasing much faster than their traditional voice business. The Johannesburg-based cross-town rivals also need to be able to compete with Telkom's [JSE:TKG] fast-growing BCX unit in gaining more business customers.

Didata “doesn’t respond to market rumour, speculation or hypothetical questions about the company or any of its affiliates or subsidiaries,” spokesperson Hilary King said.

Vodacom doesn’t comment on speculation, a spokesperson said. A spokesperson at MTN declined to comment.

NTT bought all of Didata’s stock for $2.7bn in 2010, which at the time was its second-biggest purchase of an overseas asset. Didata, which has operations across the globe, provides live data for the Tour de France cycle race as well as information-technology services from outsourcing to supplying computer and networking equipment.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders