Vodacom to end Nigeria contract by June 6

JOHANNESBURG – South African cellular operator Vodacom will end its management contract with Econet Wireless Nigeria (EWN) by June 6, a source familiar with the case told Reuters yesterday.

The source quoted a letter from Vodacom CEO Alan Knott-Craig to EWN board chairman Oba Otudeko as saying: “It is with regret that I must inform you that the Vodacom Group board resolved at its 27th May 2004 board meeting that it can no longer pursue the transaction envisaged with EWN.” “It also resolved to terminate the current management agreement which has been in place since 1st April 2004 by no later than 6th June 2004.”The company also announced yesterday that deputy chief executive Andrew Mthembu had resigned.”It is Mthembu alone quitting and the information is in a circular to staff by the CEO,” said Mthobi Tyamzashe, Vodacom spokesman, who gave no further details.Vodacom is 50 per cent owned by fixed-line operator Telkom while Vodafone of the UK has 35 per cent and investment firm VenFin the remainder.-Nampa-Reuters”It also resolved to terminate the current management agreement which has been in place since 1st April 2004 by no later than 6th June 2004.”The company also announced yesterday that deputy chief executive Andrew Mthembu had resigned.”It is Mthembu alone quitting and the information is in a circular to staff by the CEO,” said Mthobi Tyamzashe, Vodacom spokesman, who gave no further details.Vodacom is 50 per cent owned by fixed-line operator Telkom while Vodafone of the UK has 35 per cent and investment firm VenFin the remainder.-Nampa-Reuters