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Telecommunications Vodafone takes major stake in Crazy John's
Telecommunications Vodafone takes major stake in Crazy John's | Vodafone takes major stake in Crazy John's |
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| by Stuart Corner | |
| Thursday, 04 September 2008 | |
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Vodafone has given no indication of the size of its shareholding or the reason for the move, which has the potential to create a conflict with its other partners in which it does not hold equity. CEO, Russell Hewitt, said: "Crazy John’s will become a significant part of Vodafone’s ongoing business strategy," but did not elaborate. In July 2007, a consortium of private investors comprising two branches of the Smorgon family and The Selpam Group took a 16.6 percent stake in Crazy John’s for an undisclosed sum, which The Financial Review reported to be $50 million. The deal follows Crazy John’s abandoning its 15 year relationship with Telstra and signing up to use the Vodafone network. Crazy John’s said it was planning to move into markets overseas and that the selldown “signal’s Ilhan’s intentions to accelerate the growth of the business both organically and through acquisitions.” In March this year, Crazy John's and Vodafone extended the initial agreement, which was for an unspecified term, into the next decade with Hewitt, saying “Our first nine months in business together has been very successful and Vodafone is looking forward to a long and prosperous future with Crazy John’s.” Brendan Fleiter, managing director at Crazy John’s, said the company would open around 20 new stores throughout Australia in 2008 “to capitalise on Vodafone’s national mobile broadband network expansion.” After Ilhan's sudden death in October, managing director, Fleiter, said that the business would continue to operate with Ilhan’s widow, Patricia, as its major shareholder." Commenting on the deal today she said: "Vodafone, with its international network, can take Crazy John's to the next level of growth and development."
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