South African fixed-line operator Telkom has said that its divestiture of its stake in Vodacom, the country’s largest mobile operator, will allow it to re-enter the mobile market across its African territories. Speaking at the presentation of the company’s latest financial results (year-ending March 2008), CEO Reuben September said Telkom was in “robust discussions” regarding the divestiture of its 50 percent stake in Vodacom. Telkom confirmed last week that Vodafone – owner of the other 50 percent – had offered to buy a further 12.5 percent stake in Vodacom for 18.75 billion rand (US$2.47 billion), though the offer is reportedly conditional on Telkom unbundling or spinning-off its remaining 37.5 percent stake to its existing shareholders. The company has also received a bid from a consortium led by the Mvelaphanda Group that plans to purchase Telkom once it has exited Vodacom. “The situation is such that we cannot be clear on the definite timeline,” September said in reference to both deals, reports Reuters.

September said the disposal of the Vodacom stake would enable Telkom to re-enter the country’s mobile market; its alliance with Vodafone had barred it from doing so previously. The company has reportedly invested 1.7 billion rand in W-CDMA technology, allowing it to offer mobile data alongside fixed and ‘fixed-wireless’ voice services. “In the next few years in line with our strategy, Telkom will be aggressively funding the expansion of our African units and our networks in South Africa,” September said. Telkom also owns operators in Nigeria and Kenya. The company reported a 4.4 percent fall in its headline earnings per share (EPS), which dropped to 1,634.8 cents per share for the year to end-March due, in part, to rises in finance charges and operating expenses.