Vodafone has agreed to acquire 15% more in Vodacom Group

Vodafone has agreed to acquire an additional 15% stake in Vodacom Group
(Proprietary) Limited (”Vodacom Group”) from Telkom SA Limited
(”Telkom”) for a cash consideration of ZAR22.5 billion (c.£1.4
billion) less the pro rata consolidated attributable net debt of Vodacom Group of approximately ZAR1.55 billion (c.£0.1 billion). The transaction will increase Vodafone’s shareholding in Vodacom Group from 50% to 65%. Vodacom Group will be listed on the Johannesburg Stock Exchange (”JSE”) and the remaining 35% of Vodacom Group will be demerged by Telkom to its shareholders.

Commenting on the transaction, Vittorio Colao, Chief Executive of Vodafone, said:

“As a long-term investor in South Africa we are delighted to be increasing our shareholding in Vodacom Group, the country’s leading mobile operator with a presence in four additional African markets. We will continue to support the management team in their strategy of transforming Vodacom into a full service provider in Africa and also look forward to playing a greater role in delivering the broader social benefits of mobile telecommunications in the continent. We are confident that the transaction will deliver value to our shareholders.”

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