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.