South Africa’s Vodacom Group is paying ZAR2.5 billion (USD250 million) to take an additional 17.2% equity stake in mobile unit Vodacom Tanzania, lifting its indirect interest in the cellco from 65.0% to 82.2%. The transaction is being carried out through the purchase of new shares in the Tanzanian unit’s minority shareholder, private investment company Cavalry Holdings, and will be funded through cash and existing debt facilities, it said.
Vodacom Tanzania is the South African group’s most successful business outside its home market, with 10.02 million subscribers at 30 September 2013 according to TeleGeography’s GlobalComms Database, a leading market share of 38.0%. The transaction requires approval from the Reserve Bank. Vodacom Group is itself a consolidated (65%-owned) division of the UK’s Vodafone Group (which gives the UK giant an effective 53.4% stake in Vodacom Tanzania if the latest transaction is approved).