MTN Sets Sight On NetOne?

South Africa's MTN is reportedly keen to acquire a majority stake in Zimbabwe's third largest mobile operator, NetOne. South Africa-based news daily Time Live reports that MTN has proposed to buy a 60% stake in state-owned NetOne. This is more than an upper limit of 49% foreign ownership for companies operating in Zimbabwe as contained in the country's indigenisation laws. CFW is not surprised by MTN's interest in NetOne as we have always viewed the Zimbabwean market as MTN's next target. However, it remains to be seen if it will be given a concession by the government to own a larger share of NetOne or if it will accept a 49% stake with the hope of increasing it should subsequent governments in Zimbabwe choose to relax the indigenisation laws.

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