The Public Investment Corporation (PIC) now officially owns over 15% of Vodacom.
In July, the PIC agreed to acquire government's 13.91% interest in the company on behalf of the Government Employees Pension Fund. On 31 July, Vodacom announced the PIC had so far acquired the first tranche of those shares, worth 7.049% of the company, and increased its total interest in the telco to 8.574%.
Today, the PIC informed Vodacom it had acquired a further 6.812%, upping its total investment in the mobile operator to 15.386%.
The full government stake was said to be worth more than R28 billion, and the sale was prompted by government's need to help finance a R23 billion bailout allocation for struggling power utility Eskom.
At the time of the announcement, National Treasury said the deal gave expression "to the commitment made in the 2015 Budget and the 2014 Medium-Term Budget Policy Statement, that funding of state-owned companies would be in a deficit-neutral manner.
"The sale of the Vodacom stake was the most viable option for ensuring government was able to swiftly realise the proceeds and inject equity into Eskom to bolster the utility, while simultaneously ensuring government was still able to deliver on its strategic objectives," treasury noted.
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