Canada's Telesystem International Wireless (TIW) officially confirmed yesterday that it was in talks with the UK's Vodafone Group for the sale of the mobile telephone operators it owns in Romania and Czech Republic - MobiFon (Connex) and Oskar Mobil.
TIW owns the controlling interests in MobiFon (around 79%), while Vodafone holds 20.1%. Vodafone is world's largest mobile telephony operator in terms of revenues. If TIW decides to sell its stake in MobiFon, Vodafone will have first rights to it.
"In light of press speculation, Telesystem International Wireless Inc. confirms that it is in talks with Vodafone Group plc regarding the possible sale of its interests in MobiFon S.A. and Oskar Mobil a.s.," the Canadian company announced. "TIW believes that any offer from Vodafone will equate a value per share close to the current share price."
Nonetheless, TIW officials insist that although talks have begun "there can be no assurance that a transaction would occur". The company intends to make no further announcements unless an agreement is reached or discussions are terminated.
When contacted by Ziarul Financiar, MobiFon officials declined to comment on the TIW announcement.
The announcement confirms speculations on the market about Vodafone's plans to enter the Central and Eastern European telecommunications market. As recently as yesterday the Czech press reported the start of negotiations between TIW and Vodafone for the sale of Oskar Mobil, though officials from the two companies denied this information.
Vodafone representatives previously declined to comment on any possible entry into the regional telecommunications market, though they confirmed their interest in Central and Eastern Europe. "Vodafone regards this area as one with a high growth potential, though we don't want to make any further comment," said Ben Padovan, Vodafone's spokesman, recently.
Recent rumours on the Romanian market centred on a possible change of the Connex brand to Vodafone and even saw the British group becoming the majority shareholder in MobiFon.
Connex's market value is estimated by specialists at between 2 and 3bn dollars (1.49 - 2.24bn euros). The Romanian mobile telephony operator had 4.91 million customers at the end of last year. In 2004 Connex collected 686.3 million dollars in service revenues (553.5 million euros at the average exchange rate for last year), up 29.6% on the previous year, and enjoyed an operating income of 226 million dollars (182 million euros), 32.4% higher than 2003. According to TIW officials, Connex had a 48% share of the total market in Romania at the end of last year.
Oskar Mobil has 1.83 million customers and a 17% market share. It posted 13.4bn korunas (602 million dollars and 486 million euros) in revenues for 2004 and an operating income of 4.15bn korunas (186 million dollars and 150 million euros). It bought a 3G licence for the Czech market early this year.
Connex, like its main competitor on the Romanian market, Orange, acquired a licence for 3G services last November. According to a recent announcement by Connex's president and COO, Ted Lattimore, Connex will have a first commercial 3G offer ready for launch in the next four months. mihai.musatoiu@zf.ro
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