Vodacom and Virgin Group Announce Intention to Launch a Joint Bid for Controlling Stake in V-Mobile Nigeria

Today, Vodacom and Virgin Group confirmed their intention to bring together their extensive expertise in the Mobile Telephony market, and to form a Consortium together to undertake a joint bid for a controlling stake in Nigeria’s V-Mobile.

The members of the new Consortium believe that the combination of Vodacom’s extensive expertise in African Telecommunications markets and Virgin Group’s proven skills in successfully operating in highly competitive markets, will prove to be a very attractive proposition for V-Mobile shareholders, staff and customers, and will ensure that V-Mobile becomes a far stronger company.

Further details will be announced at the appropriate time.

Source: Vodacom press Release | See also: ThisDay

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You know what I think? I think the three companies involved should stop dribbling us. Today it's Virgin, tommorrow Vodacom, next tommorrow they say 'both of them together'. Who knows if they will both withdraw their offers next week?

Does Vmobile need the money so badly, or do the investors just want their cash back?

Seun I think its the stockholders' (investors) hands at work. They are trying to cash in. Two birds for price of one.

i think if Vmobile is dire need of money ..they should just visit the capital market thats a better optin for them..Nigerians will scramble for the shares ..instead of waiting on these dribblers as u described them

Quoting the press release, "The members of the new Consortium believe that the combination of Vodacom’s extensive expertise in African Telecommunications markets and Virgin Group’s proven skills in successfully operating in highly competitive markets, will prove to be a very attractive proposition for V-Mobile shareholders, staff and customers, and will ensure that V-Mobile becomes a far stronger company. " I think we should not see things as though we are being dribbled, the consumer will be the better for it, while the stakeholders want a cash in, this their 'marriage' will further expand the scope of the new company that will emerge.
Guys these are boardroom intrigues. I am particularly excited at the fact that these guys are almost climb over each other to invest in Nigeria, our own Nigeria

Bell thats not really something to be excited of. You dont want major industries owned by foriegners because you lose a lot of profit, it sets up a symbol that nigerian's are incapable and it can affect national security. Imagine if there was some war and Virgin or MTn decided to cut thier lines. (A certain company did this in somalia)

Ultimately its good to get investsment money, but they should come through the apital markets or have no ownership power

Obong, I beg to disagree. Do we say that the investment of Japanese Honda as Acura in the US or Daimaler Chrysler, German owned and with a factory in the US means that the Americans are incalpable ? Don't forget that as far as telecommunications is concerned Globacom is playing its role and as shown us all what Nigerians can do. Besides, the work force in the result of the investment will be Nigerians who will receive training as a result of such arrangements and in turn put it back in the economy. I think Nigeria needs to embrace foriegn investment although regulated. The arrangement is also not an outright sale you know.

I really do not think this symbiotic relationship will go well. ECONET is bent on stopping V-mobile  at all cost from getting any direct investment without its veto based on the agreement it had with V-mobile, moreover, Virgin and Vodacom will have to risk being seued for contempt of court if they go ahead and invest in V-mobile.  ECONET has even gone a step further to warn any "would-be" investor that V-mobile is a no-go area at least until the court delivers a substansive verdict on its relationship and agreement with Vmobile. I heard that ECONET instituted a court injunction against vodacom in South Africa and another one against Virgin in UK.

The fact is V-mobile is cash strapped!!! they need money to catch up with MTN but where will the money come from? I heard that First Bank wants to sell its equity in V-mobile because things are actually not looking good for Vmobile. But why not go public? well that will probably be the last option and one that ECONET will have no answer to.

Vmobile will always have a need for a technical partner as ECONET had really messed up things there... i heard that expatraits were just coming in from Zimbabwe during the era of ECONET without developing local capabilities, when ECONET finally left, it became aparent that there were no local guys that can take off from where ECONET stopped and the trend had not changed much since then. Vmobile is not investing in mental development of their local guys like MTN did, they would rather give out contracts to their foreign experts than train local guyz to handle stuffs here. The result is, all those experts refuse to train local guys and they go back to their countries after the expiration of their contracts. Infact some of them were coming to Nigeria lo learn and get paid for it, then return to their countries with whatever knowledge they had been able to glean from Nigeria.

The marriage of three Vs