Vodafone gains majority stake in Vodacom

South Africa mobile telecoms  company Vodacom announced that UK operator Vodafone has agreed to acquire an additional 15 per cent stake in Vodacom Group from Telkom for a cash consideration of ZAR22.5 billion (US$2.2 billion) less the pro rata consolidated attributable net debt of Vodacom Group of approximately ZAR1.55 billion.

Vodafone has waited three years to secure a majority stake in Vodacom

The transaction will increase Vodafone’s shareholding in Vodacom Group from 50 per cent to 65 per cent. Vodacom Group will be listed on the Johannesburg Stock Exchange (JSE) and the remaining 35 per cent of Vodacom Group will be demerged by Telkom to its shareholders.

The acquisition is subject to, among other conditions, approval by 75 per cent of Telkom’s shareholders and is interconditional upon Vodacom being listed on the JSE and Telkom demerging the remaining 35 per cent of Vodacom to Telkom’s shareholders.

Telkom’s two largest shareholders, the government of South Africa and the Public Investment Corporation Limited, owning a combined 58 per cent, have irrevocably committed to vote in favour of the transaction and will become significant shareholders in Vodacom following the completion of the transaction. The South African government has agreed that it will retain a minimum shareholding of 10 per cent in Vodacom for a period of 12 months after the listing on the JSE.

“We are hopeful that Vodafone will see Vodacom as its vehicle into Africa and involve us in everything that it does here on the continent,” said Vodacom Group CEO, Pieter Uys prior to the deal.