Vodafone sells stake in Vodacom

Vodafone has announced that it has sold 90 million ordinary shares in Vodacom – some 5.2 percent – to institutional investors. The shares were sold at R165 apiece. It did this through an accelerated book-build process.

Pictured: Till Streichert, Vodacom CFO, and 2017 CFO Awards winner

Vodacom said in a statement:

"This equates to 5.2 percent of Vodacom's share capital and values the 90 million tranche at R14,85 billion. The placement ensures that Vodacom meets the JSE's free float requirement of more than 20 percent. Vodacom obtained a temporary dispensation from the JSE to dip below this level to facilitate its circa R35 billion purchase of a 35 percent stake in Safaricom from Vodafone."

Vodacom recently acquired a 35 percent interest in Safaricom, increasing Vodafone's ownership in Vodacom to 69.7 percent (up from 65 percent). This move will, however, restore Vodafone's shareholding in Vodacom to a percentage similar to what it held prior to the Safaricom transaction.