Uk Phone Giant May Float In '99
Illawarra Mercury
Thursday July 16, 1998
United Kingdom-based cellular phone giant Vodafone is ramping up plans to float its Australian subsidiary on the stock exchange, hinting at a possible listing next year.
Vodafone Australasia chief executive Dr Brian Clark said in Sydney yesterday there was ``no doubt" that Vodafone would seek to float the company in Australia as the company swings to profitability.
``The process of thinking about what we will do in Australia is under way," Dr Clark said.
He said the Vodafone network reached profitability in January this year and overall the ``group will be profitable in the very near term".
``I have no doubt that we will be listing Vodafone Australia," he said.
Asked if he expected a listing within two years, Dr Clark said: ``That's the sort of timeframe."
He declined to speculate on a possible structure of an initial public offer.
Analysts said a float of 25 per cent to 50 per cent was possible before the turn of the century.
By then Vodafone's float could fetch anywhere from $1.25billion to $2.5billion, based on rough valuations from stockbroker JB Were.
``By 2000 Vodafone Australasia could be valued at $5billion to $6billion," said Paul Zaman, telecommunications analyst at JB Were.
Solid growth is expected at Vodafone with Dr Clark predicting increasing use of mobile phones for services such as e-mail and internet access.
Recent technological advances meant commercial delivery of these services was ``months away, no longer years or decades".
Dr Clark also confirmed recent analysts' forecasts that Vodafone continues to eat into Optus Communications' share of the GSM mobile market.
He said Vodafone's share was in excess of 18 per cent. That compares with unconfirmed figures as at the end of May published by AAP which indicated Vodafone's share was 17.5 per cent, Optus at 34.4 per cent and Telstra Corp at 48.1 per cent.
Vodafone's total subscriber base stood at more than 650,000 subscribers.
© 1998 Illawarra Mercury
