Tatas in last lap for SA mobile firm stake race

The Tata group's bid for a 26 per cent stake in the South African government-owned mobile company Second Network Operator has been shortlisted for further consideration.

According to sources close to the development, two bidders have been shortlisted: the Tata group and Old Mutual Asset Managers. A Tata group source confirmed the development but refused to divulge any details.

The 26 per cent stake is conservatively valued at between Rand 1 billion ($162 million) and Rand 1.5 billion ($243 million).

This is the first time that the South African government is inviting foreign direct investment in its telecom industry.

The Tata group has bid through Tata Africa Holdings, sources said. This marks yet another

initiative by the Tata group to expand its presence in South Africa, beyond its interests in automobiles, software, hotels, tea, and mining and metallurgy.

The group recently entered the tea market in South Africa, with the launch of its Tetley brand. Tata Steel already has a 1.2 lakh tonne per annum ferro chrome venture in Richard's Bay in South Africa and is looking at acquiring more ferro chrome units there.

Tata Motors recently launched its B-segment car Indica and its sedan Indigo in South Africa and is expecting to capture around 10-12 per cent of the market for cars in the country in a couple of years. The group is in all the segments of the automobile industry in South Africa, from small cars to heavy commercial vehicles.