Bloomberg has reported that the South African government is likely to sell its 13.9% stake in Vodacom \u2013 worth around R28 billion at the current share price \u2013 to fund Eskom.<\/p>\n
The report, which cited people familiar with the matter, said the government does not view its stake in Vodacom as strategic. The sale is also unlikely to face opposition from unions.<\/p>\n
Reuters reported in January that the government may fund the $870 million for Eskom as soon as June 2015.<\/p>\n
\u201cNational Treasury has already identified a viable strategy to raise the required amount of funding that could be executed,\u201d Treasury spokesman Jabulani Sikhakhane said at the time.<\/p>\n
\u201cDue to the commercial sensitivities involved, we cannot provide details. However, the process is proceeding to plan,\u201d Sikhakhane said.<\/p>\n
According to Reuters, sources said in\u00a0December 2014 that the government was considering selling its shares in Vodacom and Telkom as part of its funding strategy.<\/p>\n
However, a\u00a0Bloomberg report stated a Telkom sale is unlikely,\u00a0partly because it would face opposition from labour unions as Telkom is already trying to cut jobs.<\/p>\n
The Bloomberg report stated that MTN was interested in buying a stake in Telkom, citing three people with knowledge of the negotiations.<\/p>\n
An acquisition of government\u2019s Telkom stake by MTN would, apart from union opposition, also face scrutiny by the Competition Commission.<\/p>\n
The most likely outcome is therefore the sale of the government\u2019s share in Vodacom.<\/p>\n
Selling Vodacom and Telkom the quickest way to help Eskom<\/strong><\/a><\/p>\n Neotel deal to make life tougher for Telkom: Vodacom CEO<\/strong><\/a><\/p>\n