Vodafone ups VenFin stake

By Iain Scott, ITWeb group consulting editor

Johannesburg, 07 Feb 2006

UK cellular network operator Vodafone now owns 84.3% of JSE listed VenFin.

The group says VenFin shareholders owning a total of almost 309 million shares have accepted Vodafone`s offer to buy their shares at R47.25 each.

Added to the 30.25 million VenFin shares already owned by Vodafone, as well as the 35.51 million VenFin B shares acquired from the Rembrandt Trust, this gives Vodafone an 84.3% shareholding and an effective voting interest of 90.8%.

Last week VenFin announced it had disposed of all of its assets except its 15% stake in local cellular network operator Vodacom, the target of Vodafone`s takeover of the group.

Gaining VenFin`s shareholding in Vodacom will bring Vodafone`s stake in the company to 50%, on a par with the stake held by fixed-line operator Telkom.

In addition to the Vodacom shareholding, VenFin`s other asset is the R5 billion paid by a newly incorporated unlisted public company (Newco) for the non-Vodacom assets.

Newco is to be incorporated with the same share capital as VenFin, and all VenFin shareholders who accept Vodafone`s offer are to receive a pro-rata right from Newco to use some of the proceeds from selling their shares to buy shares in Newco.

The VenFin share was trading at 4 810c on the JSE early this afternoon, down 69c or 1.41% from yesterday`s close.