The government is reportedly in advanced talks to sell its 13.9% stake in mobile operator, Vodacom to fund ailing power utility, Eskom.<\/p>\n
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.<\/p>\n
With a market cap of R199 billion, the deal would be worth approximately R28 billion.<\/p>\n
The purchase will likely be completed in stages, Bloomberg’s sources said.<\/p>\n
\u201cWe are not commenting on what non-core assets are going to be sold to raise money,\u201d Treasury spokeswoman Phumza Macanda told Bloomberg on Tuesday.<\/p>\n
Vodacom declined to comment.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Vodafone \u2018open\u2019 to government stake in Vodacom<\/a><\/strong><\/p>\n Government eyes Vodacom sale, MTN mulls Telkom buy: report<\/strong><\/a><\/p>\n