Worst business decision in South African telecoms history

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In 2008, Telkom made a very poor business decision.

Telkom’s decision to sell its stake in Vodacom ranks as the biggest business blunder in South Africa’s telecommunications market.Vodacom, which launched South Africa’s first GSM network in 1994, was a joint venture between Telkom , Vodafone , and Venfin .

When Venfin decided to sell its stake in Vodacom in 2005, Telkom passed on the opportunity, and Vodafone snapped it up for around R16 billion. Today, Vodacom has a market cap of R230 billion. It means that Telkom’s former 50% holding would be valued at R115 billion.

 

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