Vodacom Group has announced it is selling it’s business unit in Nigeria, the largest telecommunications market in Africa. The South African network operator disclosed that it is selling 100% of its subsidiary.
Vodacom is selling to Synergy Communications, who will acquire 100% of Vodacom Business Africa’s (VBA) units, as Vodacom has also concluded plans to sell its business operations in three other African markets.
The company disclosed that its subsidiaries in Zambia and Cote d’Ivoire will also be sold to Synergy Communications, all of which are subject to the approval of the regulatory authorities within these markets.
Why Vodacom is selling: In an official statement seen by Nairametrics, Vodacom no longer want to conduct direct service for global enterprise customers in these three markets, but will instead operate as a pan African telecommunications networks provider through local relationships like the one with Synergy Communications.
According to Vodacom, the deal is in line with the company’s enterprise strategy in Africa, which has been refocused to grow and strengthen its core business.
“Vodacom has a clear vision for strengthening our position as a leading pan-African business and will work with local service providers like Synergy Communications 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.” Shameel Joosub, CEO of Vodacom Group, said.
[READ ALSO: CBN vows to sanction erring financial institutions]
Adding that, “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 the collective strengths of Vodacom and Synergy Communications to meet the changing requirements of clients across each of these markets.”
Why Synergy Communications is buying: The company’s objective is to be a leading provider of cloud and digitally based services in key markets across sub-Saharan Africa, and provide key additional assets in its build out of a regional footprint.
“This is an exciting landmark transaction for Synergy Communications, providing us with additional momentum in the delivery of our strategy as a pan-African enterprise digital Services Provider.
Synergy Communications will partner with major global cloud providers and deliver platform-based services to both multi-nationals and local enterprises.” Andile Ngcaba, Chairman of Synergy Communications said about the deal.
Note: Synergy Communications currently has operations in Malawi, Mozambique, and Botswana.