Vodacom cleared for listing

18 May 2009

South Africa’s largest mobile operator by subscribers, Vodacom, will be listed on the Johannesburg stock exchange (JSE) today after courts ruled against a move to block the sale by the Communications Workers Union (CWU). As reported by CommsUpdate on 20 April, CWU attempted to stall the sale because of fears that Vodafone will gain control of the company and use the global recession as an excuse to cut jobs. Vodafone currently holds a 50% stake in Vodacom, with the other half held by incumbent fixed line operator Telkom South Africa. Telkom plans to sell 15% of its stake to Vodafone in a ZAR22.5 billion (USD2.53 billion) deal and will list its remaining 35% stake on the JSE.