By Staff Writer
The South African government said on Wednesday it has sold its 13.91 per cent stake in Vodacom to the Public Investment Corporation (PIC) to help to finance the R23 billion allocation to Eskom.
The National Treasury in a statement said: “In arriving at a decision to dispose of its stake in Vodacom to the PIC, “government undertook a market sounding exercise where numerous organisations presented proposals for raising the funding to be allocated to Eskom.”
It added: “Government considered a wide range of options including the sale of listed shareholdings it holds directly, the disposal of listed stakes held indirectly through Development Finance Institutions (DFIs), the sale of government’s unlisted shareholdings in state owned companies (SOCs) or their subsidiaries, the ring-fencing and sale of assets held by SOCs and the sale of other assets, such as property, owned by the state.”
The National Treasury said the sale of the Vodacom stake was the most viable option for ensuring that 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.
“The PIC’s offer to Government was in line with pricing quoted by other institutions when taking into account the large size of the stake and also provided the added benefit of keeping the shares within the broader family of public sector-related institutions,” said treasury.