Vodacom set for JSE debut

Vodafone CEO Arun Sarin said that his company is planning to sell shares in Vodacom as part of a plan to raise its 50 percent stake in the company.
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Sell shares in Vodacom to raise its 50 percent stake in Vodacom? So they want to sell some of their 50% and end up with more than 50%? Ok that makes sense.....
 
Wyzak said:
Sell shares in Vodacom to raise its 50 percent stake in Vodacom? So they want to sell some of their 50% and end up with more than 50%? Ok that makes sense.....
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I think they want to acquire Telkom's 50% stake, keep enough for themselves to have a controlling stake in VC and list the rest.
 
Wyzak said:
Sell shares in Vodacom to raise its 50 percent stake in Vodacom? So they want to sell some of their 50% and end up with more than 50%? Ok that makes sense.....
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Read the article again, it is what Syndyre posted.
 
ic said:
Read the article again, it is what Syndyre posted.
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I read that article 3 times over and was just as confused as Wyzak :rolleyes: but what Syndrye says makes much more sense.
 
ambo said:
I read that article 3 times over and was just as confused as Wyzak :rolleyes: but what Syndrye says makes much more sense.
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I've just read the article again, and it still makes sense to me, I must be missing a point of potential ambiguity.
 
mcleodd said:
Sign up for an online trading account.

Try Standard Bank at https://securities.standardbank.co.za/ost/

Or BOE at http://www.boepersonal.com/
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Dont think this will work. You will need a broker. It all depends on how the shares are placed. If it is a full public listing then you might be OK. The most likely situation is a private placement in which case only your broker could secure the shares on your behalf. Even then, not all brokers are invited to private placements.

You will be charged a brokerage fee for the intial equity purchase and thereafter a monthly or annual brokerage fee. These vary amongst brokers ad are also dependant on the volume of shares you trade.
 
JK8 said:
They doing the BEE thing right?
Then ill buy!:)
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Could be smart but depends on your motives. Long-term or short-term outlook JK8?

Remember BEE deals are sold at a discount and a significant BEE deal could result in the dilution of the share value in the short term - or it could be viewed as a wise move by the market and have the opposite effect. This is short term though. IMHO MTN is a better buy than any of the major telco players right now. Although corporate action at VC and Telkom could change that. MTN is a stable long-term investment though.
 
DJStealth said:
Could be smart but depends on your motives. Long-term or short-term outlook JK8?

Remember BEE deals are sold at a discount and a significant BEE deal could result in the dilution of the share value in the short term - or it could be viewed as a wise move by the market and have the opposite effect. This is short term though. IMHO MTN is a better buy than any of the major telco players right now. Although corporate action at VC and Telkom could change that. MTN is a stable long-term investment though.
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It will be long term...
I have MTN shares just wished I bought another R5ooo more!:o
Voda will be stable in the coming years... I think.
MTN also has it feet in unstable waters overseas in the Middle East.
 
Remember that MTN has solidified its position as a market leader in Africa and have the infrastructure in place. Vodacom are expanding in Africa but dont have the infrastructure which will mean significant CAPEX expenditure to their books over the coming years. This will significantly affect profits and therefore EPS and I (and many others) see greater return by investing in a company who already has the infrastructure in place and a good expansion strategy. Middle East is only a small aspect of their operations and they have done their due dilligence beforehand. Middle East is also a great opportunity - might be risky, but people still requie telecommunications there. Vodacom are entering markets which are run by MTN. They need to do a lot more work and it will cost more than it cost MTN. However that doesnt mean that African markets are not looking for competition. Other African companies have tried to compete with MTN and failed - lets see how Vodacom does?

Vodacom long-term is always going to be a good bet.
MTN better I think.
Telkom come last in that race.
I am waiting or the Neotel IPO:-) They will need IPO funding for expansions. They coudnt raise enough debt.
 
DJStealth said:
Remember that MTN has solidified its position as a market leader in Africa and have the infrastructure in place. Vodacom are expanding in Africa but dont have the infrastructure which will mean significant CAPEX expenditure to their books over the coming years. This will significantly affect profits and therefore EPS and I (and many others) see greater return by investing in a company who already has the infrastructure in place and a good expansion strategy. Middle East is only a small aspect of their operations and they have done their due dilligence beforehand. Middle East is also a great opportunity - might be risky, but people still requie telecommunications there. Vodacom are entering markets which are run by MTN. They need to do a lot more work and it will cost more than it cost MTN. However that doesnt mean that African markets are not looking for competition. Other African companies have tried to compete with MTN and failed - lets see how Vodacom does?

Vodacom long-term is always going to be a good bet.
MTN better I think.
Telkom come last in that race.
I am waiting or the Neotel IPO:-) They will need IPO funding for expansions. They coudnt raise enough debt.
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The African expansion is and will be an extra advantage.
Voda stands a good chance of being SAs biggest telecoms giant, mobile and fixed line. If thats true, expanding in Africa wont be such a big problem.

But ye Ill try to get some, BEE subsidized obviously!:)
 
Not a problem at all - even without the fixed line business, but still a huge CAPEX non the less.

Please note I am in no way providing expert advice - but rather my own opinion - I believe it would be illegal for me to do that.

BTW - get in touch with me if by some miracle you are able to get hold of BEE shares. Being a white guy makes it damn near impossible to hold them - but there are ways around that too. The majority of BEE deals are only structured to benefit a tiny minority of already priveleged non-white South Africans - they dont serve any purpose for those who could truly benefit. Thats why Telkom's stance on suppliers is absolutely ridiculous.
 
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