Telecommunication giant MTN Group is in talks to buy Nigeria’s Visafone Communications to solidify its grip in the South African firm’s most important market, sources familiar with the discussions said on Friday.

Wireless-network operator Visafone was set up eight years ago to deliver voice and broadband services through mobile and fixed telecom platforms after business tycoon Jim Ovia, who also founded Zenith Bank, acquired three operators.

“The deal is done. We’re almost putting ink to paper,” a source close to the deal said.

Another source said the talks would conclude “very soon”.

Both sources did not say how much MTN would spend on the purchase and how big a stake in Visafone it would take up.

MTN spokesman Chris Maroleng said the company did not comment on market speculation.

Visafone officials were not immediately available to confirm whether the firm was involved in discussions.

Visafone grew its subscriber base from 30,000 after the acquisitions in 2007, to 2.2 million at the end of 2014, data from the telecom’s regulator showed.

But fixed wireless operators with CDMA technology platforms most suited for broadband and data services have faced stiff competition from more established rivals such as India’s Bharti Airtel, Dubai-based Etisalat and MTN, hitting the industry’s average revenue per user (ARPU).

ARPU, a key gauge of telecoms firms’ competitiveness as well as of consumer spending trends, has declined over the past three years to $5 from $8 as competition deepens.

MTN had nearly 60 million users in Nigeria in 2014, about 27 percent of its entire subscriber base across 22 countries.

Africa’s most populous country is also the biggest contributor to MTN’s revenue, providing more than a third of overall turnover.

MTN shares were down 0.4 percent at 1200 GMT and are flat so far this year.

http://businessdayonline.com/2015/04/mtn-to-buy-visafone-communications/#.VSgl6vnF-Pw

Nice one then.

modified

Wow,

FTC for the first time.

Mtn is yet to fix alot of things in its network & it wants to purchase visafone

God na ur hand I dey oh.

Just wonderin how many more messages & d unwarranted deductions I will be gettin in a day wen that ink is finally put to paper.

I doubt this news. Visafone is rich itself. The owner is a rich man and he owns different companies. I don't see him selling of his biggest assets

Not a bad move. Visafone already dead

Mtn!!!!!

Jim ovia can't invest in visafone anymore?

O boy...

so they will now put the silly girl that use to say one minute remaining there too abi? What is wrong with empty hen?

Mtn with money

HMMMMMMMMMMMMMMMMMMMMMMM
MTN| SILENT FIRST

That is a good development, I think buying visafone will reduce call rate, and bring about affordable data plan

But its non of my business.......





In other news......

We need affordable data plans.

Ok na.. Make dem buy am

ollah1:
I doubt this news. Visafone is rich itself. The owner is a rich man and he owns different companies. I don't see him selling of his biggest assets

My dear friend. ... Please don't venture into business as your post has displayed that you have egocentric tendencies. .
The fact that the owner is rich has nothing to do with the potential sale of the company. If the offer is right, he will sell the company and move on. What stops him from using the money to set up some other business franchise? ??

not MTN

Ok

visa fone please dont do this to me, i have been using your modem for 5years now and never had issues. selling to mtn now will make me move to france

for how much or which mtn card?

quicklink1:
:::

How much?

They actually whant to buy off competition.

This is bad news.

Oh goodie!!! More unsolicited messages for us

Empty En...

I guess the only thing left to buy in Visafone is their old dilapidated building plus dead mast, if any.

Bad deal. Bad business.

MTN world record for the most stingy network provider... even South Africans are complaining.

Bad News no more visaphone BIS unlimited again

why they no buy starcom or Onet.

Let the monopoly of market begins.

MTN has already bought VISA. I Knw a friend who works with visa but was laid off about 2 weeks ago for this same reason.

Nooo!!!

ok na