Vodafone nears VenFin climax

1 Mar 2006

Vodafone is set to complete its takeover of South African holding company VenFin by making a compulsory acquisition of the 1.5% of the company it has not yet acquired. The UK firm has been buying up VenFin shares at SAR47.25 each, well above its trading price, in an attempt to win complete control. It is now able to invoke a compulsory purchase of all outstanding shares, allowing it to delist the company. Vodafone is only interested in VenFin’s 15% stake in South African cellular operator Vodacom and plans an immediate sell-off of its other assets. On completion, Vodafone will have a 50% share in Vodacom, with South Africa’s former monopoly operator Telkom holding the remainder.

South Africa, Vodacom Group, Vodafone Group