Vmobile discusses Vodacom takeover bid

LAGOS – The board of Nigerian mobile operator Vmobile on Friday met to consider a takeover bid by a consortium of South Africa’s Vodacom and Virgin Group at US$8,05 per share, a source close to Vmobile said.

Vodacom and Virgin had previously been competing with each other for a controlling stake in Nigeria’s third-largest mobile phone company, but the rivals announced a surprise joint bid at an unspecified price on Thursday night. Like the original Vodacom terms, the new bid includes a US$200 million injection of fresh equity into the company and values the whole of VMobile at about US$1,5 billion.The investors are seeking at least 51 per cent of the new company, and the source said they might end up taking 60 per cent because shareholders would be tempted to cash in on what he saw as a full price.Vmobile had previously favoured the Vodacom bid over Virgin’s US$8,00 per share offer, and had given Vodacom a limited period in which to come up with half the offer up front, sources close to the company said.-Nampa-ReutersLike the original Vodacom terms, the new bid includes a US$200 million injection of fresh equity into the company and values the whole of VMobile at about US$1,5 billion.The investors are seeking at least 51 per cent of the new company, and the source said they might end up taking 60 per cent because shareholders would be tempted to cash in on what he saw as a full price.Vmobile had previously favoured the Vodacom bid over Virgin’s US$8,00 per share offer, and had given Vodacom a limited period in which to come up with half the offer up front, sources close to the company said.-Nampa-Reuters