By Gugu Lourie
State-owned pension fund Public Investment Corporation (PIC) has raised R3.3 billion in bookbuilding exercise, after placing 24.7 million shares with institutional investors.
Priced at R134 per share, the shares were discounted by 3.6% to the the closing price per Vodacom share on 13 July 2015, the day preceding the pricing of the bookbuild trade.
“The PIC is a long term holder of Vodacom and does not currently plan to dispose of shares during or following the expiration of the lock-up period. As is customary in these types of risk mitigation transactions, the PIC has agreed to a lock-up of 60 days (the lock-up period) on the shares held directly in Vodacom in respect of transactions similar to this,” said the PIC.
The lock-up is subject to customary exceptions and waivers by Deutsche Bank AG and Merrill Lynch International, and to exceptions relating to certain risk mitigation arrangements entered into by Merrill Lynch International with PIC.
The PIC manages more than R1.5-trillion in assets on behalf of the GEPF, and owns 16.91% in Vodacom competitor MTN Group – Africa and Middle East biggest mobile phone operator.
Subsequent to this transaction, PIC has agreed to a lock-up of 60 days on its remaining stake.
Earlier this month, the PIC increased its exposure in Vodacom by buying the Government of South Africa’s 13.91% equity stake.
The stake was acquired through the PIC’s participation in the engagement process that National Treasury ran with various financial institutions and managed to agree on the sale with PIC.