Impact of Vodacom on MTN Share prices

[ZPrinsloo]

Hey everyone, I'm new to share trading so please be patient if I ask stupid questions (Will try not to). What are your thoughts on the impact that Vodacom will have on the MTN share prices?

[DEP]

Don't worry, there is no stupid Q? I don't think VOD listing will affect MTN share price.

[SimonPB]

I think it is a good Q .. before investors had no coice, now they do .. bottom line if anything some MTN investors will move some/all off thwere holding into VOD .. how many move how much will decide any price effect ..

[bob1_1]

Will the telkom shareholders change to VOD. & since telkom hold no value in its own share what would it trade at.

[DEP]

... why will TKG hold no value post VOD?

[SimonPB]

ya, if they dig up all the copper they've got lying in the ground .. decent value there on the s***** market ..

[DEP]

Simon, that is a cheap reply coming from you!

[djw]

When is VOD actually going to list?

[SimonPB]

huh .. but tis what I think .. they offer little value without a wireless option (which VOD was not as they had no control and plenty restrictions) .. wireless is the future and without tkg is going nowhere slowly ..

[Marno_1]

Do not underestimate Telkom. Telkom still have huge contracts with corporate customers like BHP, Absa, Edgars.. Although copper is not the ideal method of providing service he still own most of the underground and overhead fibre network. We will have to wait for the results but what I could gather is that TKG is still doing very well with data. Then Telkom still provide the 2 meg capacity to MTN, Vodacom and Cell C. Telkom shares will still be worth around R37 - R40 and with current operations in other Africa states will show a huge growth potential. Remember Vodacom was the Handicap for Telkom all the years. Telkom wanted to go wireless mobile a long time ago but Vodacom/ICASA did not want to allow it. Now that Vodacom parted from Telkom the wheels can start to turn again. Telkom currently also own a pay Television licence but seems as if he will sell it for cash after changing his long term strategies.

[#11]

any information as yet on the opening value of the vodacom shares?

[SimonPB]

except they are now way behind on the wireless bus .. an as for te pay TV, well they shut Telkom Media so no income there .. yes lots of contracts, most signed in the days before comptition .. tis going to be very tough for them ..

[#13]

Record date to participate in the Friday, 29 May 2009 Special Dividend What does that mean?? that you have to hold till that day??I am looking at telkom for this deal,waiting for it to come down abit before I go in,but am a little confused..According to my understanding,You purchase 1 TKG share,you get 1 VOD share as well as 19rand cash dividend..How much will TKG trade after this?? 60/70rands?? I heard on summit that VOD is about half the value of MTN,so that would price it at around 50rand..to score 20% on this deal,TKG will need to trade at +-50/60rands provided VOD trades at 50rands..noting the reply earlier they price TKG post the unbundling at 30/40rand ...hmmm simon..what u value TKG post VOD??

[#14]

I also notice that the unbundling takes place before the dividend,so can you sell the VOD share ex unbundling and do you only need to hold the TKG share to qualify for the dividend??