Investor drops Vodacom share sale

first_imgHome Investor drops Vodacom share sale AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 08 AUG 2016 Previous ArticleHTC sees uninspiring July salesNext ArticleInterview: Orange Money Author Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including… Read more MTN, Vodafone still standing in Ethiopia contest MTN eyes $6B valuation for money unit Relatedcenter_img MTN expects fintech spin-off within a year MTNVodacom The planned sale by the country’s Public Investment Corporation (PIC) of a stake of approximately 15 per cent in South Africa’s Vodacom to black investors has fallen through, said Bloomberg, citing sources.No reason was given for the PIC’s change of heart, which could have serious ramifications for Vodacom.The PIC, which invests government workers’ pensions, was aiming to sell its stake to a consortium led by Romeo Kumalo, a former Vodacom executive, a move which would have boosted Vodacom’s black shareholding.An increase in black shareholding would also enable Vodacom to participate in a spectrum auction that the Independent Communications Association of South Africa (ICASA), the country’s regulator, is planning early next year. Companies need 30 per cent black ownership to place a bid.However, ICASA faces potential legal action from the country’s government, which might mean the sale does not go ahead as planned.The ownership rule is part of South Africa’s push to improve black ownership of industries, addressing an issue that is a hangover from the apartheid era.Vodacom is currently 19 per cent owned by black investors, compared with 39 per cent for MTN Group Ltd. Both companies are based in Johannesburg. Money Tags Richard Handford last_img read more