Government close to Vodacom sale: report
The government is reportedly in advanced talks to sell its 13.9% stake in mobile operator, Vodacom to fund ailing power utility, Eskom.
Bloomberg reported on Wednesday (24 June) that the state-owned Public Investment Corporation (PIC) is lining up a deal to acquire the entire government stake, citing people familiar with the discussions.
With a market cap of R199 billion, the deal would be worth approximately R28 billion.
The purchase will likely be completed in stages, Bloomberg’s sources said.
“We are not commenting on what non-core assets are going to be sold to raise money,” Treasury spokeswoman Phumza Macanda told Bloomberg on Tuesday.
Vodacom declined to comment.
Vodafone, which holds approximately 65% in Vodacom, has also recently expressed interest in buying the government’s share in the company, while the PIC already has a 3.19% stake in Vodacom.
Eskom CEO Brian Molefe has asked the National Energy Regulator (Nersa) for a 9.58% electricity tariff increase to fund a R50 billion shortfall needed to avert load shedding while they conduct much-needed maintenance on its ageing fleet.
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