Vodafone seeking to increase its stake in Vodacom

5 Jun 2008

UK-based Vodafone Group, which currently holds a 50% share of South African mobile operator Vodacom, is looking to purchase a further 12.5%% of the company from Telkom South Africa which currently holds the other 50%. Vodafone has been trying to oust Telkom as the joint owner and gain greater control over the direction that Vodacom moves in for some time. Vodafone has reportedly offered USD2.5 billion for the additional 12.5%, on the condition that Telkom releases its remaining 37.5% by unbundling those shares to its shareholders.

A consortium led by the black investment group Mvelaphanda has expressed an interest in acquiring Telkom’s fixed line interests but wants it to dispose of its stake in Vodacom first, making the Vodafone deal seem more likely at this time.

South Africa, Vodacom South Africa, Vodafone Group