If you have a spare couple of million lying around, there might be a wonderful business opportunity for you.
Rumours have been doing the rounds that Wireless Business Solutions (WBS), the parent company of iBurst, is for sale.
According to businesstech.co.za, industry sources close to the development have confirmed that the internet company is, indeed up for grabs and it appears that some big players are interested in the company.
Vodacom, MTN and Dimension Data are just some of the names being thrown around as potential buyers.
One industry source has said that Dimension Data has already made an offer to WBS of R250 million. However, it is believed that this offer was rejected, and that the WBS share holders are looking at a much steeper price – somewhere in the region of R500 million.
WBS Holdings (Pty) Ltd. was established in 1999 and owns 100% iBurst (Pty) Ltd. and Wireless Business Solutions (Pty) Ltd.
According to iBurst’s website, that has been in operation since May 2005, it is an exclusive Service Provider Company to Wireless Business Solutions.
WBS has quite a number of valuable assets tied to it in the telecommunications market. These include spectrum, an established network with high sites and an extensive microwave backhaul network.
As to why iBurst may be particularly valuable to mobile network operators like communication giants Vodacom and MTN, their 1.800MHz spectrum can be used to roll out an LTE network.
An LTE network of course, is the term used for a standard, wireless communication of high speed data which is directed at data terminals and mobile phones. Hence, Vodacom and MTN‘s suspected interest.
When asked about their possible interest in acquiring iBurst, Vodacom said that while they explore investment opportunities on a regular basis, they can‘t comment on any specific companies.
MTN is also keeping mum, as their Chief Technology Officer, Eben Albertyn said: “In line with internal corporate governance, as well as JSE requirements, MTN does not comment on market speculation.“
Dimension Data is also tight-lipped, only saying that they do not comment on rumours or speculation.
It looks like we will just have to wait and see what happens to WBS and iBurst, and whether any of the communication giants will grab the opportunity.
If you feel like acquiring a new company, you might want to make an offer soon.
