The government run Public Investment Corp is looking to up its stake in mobile operator Vodacom, according to a Bloomberg report.<\/p>\n
Citing people familiar with the matter, Bloomberg said that the PIC is seeking advisers for the deal, which could make the group the second largest shareholder in the operator.<\/p>\n
The PIC is a key driver for investment within the South African economy and is also responsible for managing funds acquired from public servants through the South African Government Employees Pension Fund (GEPF).<\/p>\n
It has more than R1.6 trillion under its management, including a 3.19% stake in Vodacom.<\/p>\n
The South African government currently holds just under 14% of Vodacom assets, worth approximately R30.5 billion.<\/p>\n
According to previous Bloomberg reports, the South African government may look to sell assets held in a number of companies to plug a R255 billion hole in struggling power utility, Eskom.<\/p>\n
National Treasury said in September 2014 that \u201cit would dispose of non-strategic assets to provide capital for Eskom,” which is costing the country billions each month.<\/p>\n
A Vodacom source told the publication that the operator would prefer a direct, off-market sale of the stake, should it happen.<\/p>\n
Selling Vodacom and Telkom the quickest way to help Eskom<\/a><\/strong><\/p>\n MTN and Vodacom\u2019s MTR losses are Telkom\u2019s gain<\/a><\/strong><\/p>\n