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Vodafone sells R14.85bn worth of Vodacom shares

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 06 Sept 2017
Vodafone says it remains committed to Vodacom and intends to retain a controlling majority shareholding in the telco for the long-term.
Vodafone says it remains committed to Vodacom and intends to retain a controlling majority shareholding in the telco for the long-term.

Vodacom's majority shareholder, Vodafone, has sold a chunk of shares in the SA telco for almost R15 billion, to bring its ownership in Vodacom back to pre-Safaricom transaction levels.

Vodacom says Vodafone informed it that it had sold 90 million ordinary shares in Vodacom at R165 per share to institutional investors through an accelerated book-build process. This equates to 5.2% of Vodacom's share capital and values the 90 million tranche at R14.85 billion.

Last month Vodacom finalised its acquisition of an almost 35% indirect stake in Kenya's Safaricom, from the Vodafone group. This by issuing 233.5 million new Vodacom ordinary shares which meant that Vodafone's interest in Vodacom increased from 65% to almost 70%.

Yesterday's share sale restored Vodafone's shareholding in Vodacom to a similar level to what it was before the Safaricom transaction.

Vodacom says the placement also ensures that Vodacom meets the JSE's free float requirement of more than 20%. Vodacom obtained a temporary dispensation from the JSE to dip below this level to facilitate the R35 billion purchase of a 35% stake in Safaricom from Vodafone.

In a regulatory announcement in the UK yesterday, Vodafone said it "remains committed to Vodacom and intends to retain a controlling majority shareholding in Vodacom for the long-term."

Following yesterday's placement, Vodafone now holds an approximately 64.5% stake in Vodacom.

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