VODACOM’s announcement that is in talks to restructure its proposed deal with Neotel has raised eyebrows and the merging parties could face a huge legal bill from rivals.
It is not clear exactly what will be restructured, but regardless of this, the deal is likely to come under further scrutiny and could be delayed for some time.
Rivals are apparently unhappy that the Competition Tribunal hearings into the deal have been postponed, and are demanding Vodacom pay the legal expenses they incurred preparing to oppose the proposed R7bn transaction. The merger is opposed by Dimension Data, Cell C, MTN and Telkom.
Although Vodacom has not provided any more information on the reasons for the restructuring, some commentators have suggested it may be a response to the investigation by Neotel into alleged corruption at the fixed-line operator.
About four months ago, Neotel CEO Sunil Joshi and chief financial officer Steven Whiley took forced special leave pending a probe into allegations of bribery and corruption. Lending weight to speculation is the fact that just last month, Vodacom CEO Shameel Joosub said the group would be seeking guarantees and securities from Neotel in the event of any liabilities relating to this investigation.
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METAIR, a maker of vehicle batteries and automotive products with substantial operations in SA, Romania and Turkey, has entered the UK battery market by buying up privately held Dynamic Battery Services for R31m in cash.
Dynamic distributes lead acid and specialist batteries with about 4% of market share in the UK.
The move should help bolster Metair’s already significant presence in Europe and further afield after it bought battery groups in Turkey and Romania.
Dynamic was established in 1993 by JSE-listed Altron Group’s subsidiary Powertech Batteries specifically to distribute batteries in the UK and Europe.
The UK firm specialises in direct sales and owns distribution centres spread across England in Skelmersdale, Durham and Trowbridge. Metair says the buyout strengthens its relationship with key original equipment manufacturers and supports its international strategy.
The acquisition will be earnings enhancing and will allow Metair to improve capacity utilisation at its manufacturing operations in Turkey and Romania. It will enable the transfer of battery technologies among Metair operations including for start-stop batteries.
Dynamic distributes about 200,000 batteries a year but Metair reckons this can be increased to 500,000 units over time. It aims to sell 50-million batteries a year on five continents within five years.
• Nick Wilson edits Company Comment ([email protected])
Metair CEO Theo Loock. Picture: ROBERT BOTHA
VODACOM’s announcement that is in talks to restructure its proposed deal with Neotel has raised eyebrows and the merging parties could face a huge legal bill from rivals.
It is not clear exactly what will be restructured, but regardless of this, the deal is likely to come under further scrutiny and could be delayed for some time.
Rivals are apparently unhappy that the Competition Tribunal hearings into the deal have been postponed, and are demanding Vodacom pay the legal expenses they incurred preparing to oppose the proposed R7bn transaction. The merger is opposed by Dimension Data, Cell C, MTN and Telkom.
Although Vodacom has not provided any more information on the reasons for the restructuring, some commentators have suggested it may be a response to the investigation by Neotel into alleged corruption at the fixed-line operator.
About four months ago, Neotel CEO Sunil Joshi and chief financial officer Steven Whiley took forced special leave pending a probe into allegations of bribery and corruption. Lending weight to speculation is the fact that just last month, Vodacom CEO Shameel Joosub said the group would be seeking guarantees and securities from Neotel in the event of any liabilities relating to this investigation.
...
METAIR, a maker of vehicle batteries and automotive products with substantial operations in SA, Romania and Turkey, has entered the UK battery market by buying up privately held Dynamic Battery Services for R31m in cash.
Dynamic distributes lead acid and specialist batteries with about 4% of market share in the UK.
The move should help bolster Metair’s already significant presence in Europe and further afield after it bought battery groups in Turkey and Romania.
Dynamic was established in 1993 by JSE-listed Altron Group’s subsidiary Powertech Batteries specifically to distribute batteries in the UK and Europe.
The UK firm specialises in direct sales and owns distribution centres spread across England in Skelmersdale, Durham and Trowbridge. Metair says the buyout strengthens its relationship with key original equipment manufacturers and supports its international strategy.
The acquisition will be earnings enhancing and will allow Metair to improve capacity utilisation at its manufacturing operations in Turkey and Romania. It will enable the transfer of battery technologies among Metair operations including for start-stop batteries.
Dynamic distributes about 200,000 batteries a year but Metair reckons this can be increased to 500,000 units over time. It aims to sell 50-million batteries a year on five continents within five years.
• Nick Wilson edits Company Comment ([email protected])
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