Vodacom has emerged Africa’s most
valued telecommunication company, overtaking MTN who enjoyed the top position for
seven good years, according to Bloomberg reports.. The latest market share rankings review shows MTN’s market
capitalisation was at R244bn (about ₦3.2 trillion) as against Vodacom’s
R249bn (about ₦3.3 trillion).
The last time any review of sort was carried out was in 2009 when Vodacom sold shares in an IPO.
Earlier in April, Vodacom briefly
overtook MTN but it only lasted for 3 days as MTN reclaimed the spot on April
8. MTN’s share fell (its seventh fall in eight trading session) on
Wednesday by 1.3% while Vodacom rose by 0.5%. It is believed that MTN’s long
tussle with Nigerian regulator, NCC spanning about six months may have led
to a downward spiral in the company’s market share.
The controversy surrounding the
$5.2 billion (N1.4tri) fine slapped on MTN by NCC forced its former CEO,
Phutuma Nhleko to resign and
ever since, MTN’s market share has declined by 21%. Vodacom on the other hand
appeared to have gained a 12% increase in market share within the same period.
The supposed fine has taken the company through many back and forth campaigns
to see it either reversed or reduced.
But as it stands the company is yet to agree on a conclusive payment,
especially after the case took a different twist at the Nigerian
Senate’s intervention.
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