Vodafone not making any moves on Vodacom

·30 Oct 2013

Vodafone Group says it has no current aspirations to increase its share in South African operator, Vodacom, of which it is already a majority shareholder.

The UK based group confirmed that it is seeking approval from the authorities in India, to increase its stake in the Vodafone India unit for 101.41 billion rupees ($1.65 billion), a number put forward by Reuters.

It follows a move in August by the authorities in India to enable foreign companies to take full ownership of local carriers. Previously, foreign companies were limited to direct stakes of no more than 74% in local operators.

Vodafone, which entered India in 2007 through an acquisition of Hutchison Whampoa’s local cellular assets in an $11 billion deal, directly and indirectly owns a combined 84.5% of Vodafone India.

Vodafone directly owns 64.38% of the India unit and is believed to be after full control.

Similarly, Vodafone has a 65% stake in Vodacom, but a question by BusinessTech on any intentions it may have on the SA firm drew the following response from Ben Padovan, head of group media relations at Vodafone: “I can confirm that we have sought approval in India to increase our stake.”

“There is no read across into other markets, and this has happened in India now because the sector caps governing foreign investment in telecoms companies has just been lifted from 74% to 100% in India.”

Vodafone recently agreed a $130 billion payout with Verizon Communications after the latter firm agreed to buy Vodafone Group out of its US wireless business, signing history’s third largest corporate deal.

In April 2011, Vodacom spent R200 million in a re-brand to align itself more closely to Vodafone, stopping short at a name change.