South Africa government said to be considering Vodacom exit

South Africa’s government is studying a possible sale of its 14 per cent stake in Vodacom, which is worth approximately US$2.3 billion, according to Bloomberg.

The government has approached financial advisers to discuss a possible sale, according to unnamed sources, which said an institutional sale is more likely than a private one – although 65 per cent shareholder Vodafone could be interested.

A deal is not thought to be imminent.

Vodacom is South Africa’s largest operator with 35 million mobile. In addition, it holds stakes in operators in the Democratic Republic of Congo, Lesotho, Mozambique and Tanzania.

The South African government is thought to want to use the proceeds to save the struggling state power utility Eskom Holdings.