By Staff Writer
British-based mobile phone giant Vodafone is selling 5.2% stake or 90 million ordinary shares in Vodacom for R15 billion.
The mobile phone giant has sold 90 million ordinary shares in Vodacom at R165 per share to institutional investors through an accelerated book-build process.
Vodacom said in a statement that the placement ensures that it 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 its circa R35 billion purchase of a 35% stake in Safaricom from Vodafone.
Yesterday’s placement means that Vodafone’s shareholding in Vodacom has been restored to levels that are broadly similar to the 65% it held ahead of the Safaricom transaction.
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 holds a circa 64.5% stake in Vodacom.
Vuyani Jarana, Chief Officer of Vodacom Business, has officially tendered his resignation and will serve a notice period before leaving the mobile phone operator to join South African Airways after 22 years of service.
“The Executive Committee of Vodacom Group and I would like to thank Vuyani for the contribution that he has made to the Group as a member of our Exco,” said Vodacom Group CEO Shameel Joosub.
He added that Vuyani’s appointment at SAA is testament to his diligence, foresight and visionary approach to sustainable development and his commitment to transforming Vodacom Business into the leading Pan African unit that it is today.
“Vuyani has been instrumental in building a strong team and we wish him well in his future endeavours.”
Jarana joined Vodacom as Network Controller in 1995 and served in a number of executive positions culminating in his appointment as Chief Officer of Vodacom Business in September 2012.