Vodacom listing on track
Vodacom confirmed on Friday afternoon that its listing was still on track for Monday, despite the Independent Communications Authority of South Africa (Icasa) rescinding its previous decision to allow Telkom’s sale of a R22.5bn stake in Vodacom to the British company Vodafone.
“Whilst Vodacom is seeking legal council, until a decision to the contrary is made, the listing is on track to take place on Monday,” Dot Field, chief communications officer of Vodacom, said.
Telkom confirmed on Friday that it has received Icasa’s decision.
“Telkom confirms receipt of the Icasa release and has no comment,” it said.
It is likely that the decision to rescind the sale will have a repercussion in the rand market as the offshore flows were seen as a key underpin for the currency and the current account.
The flipside, though, is the Congress of South African Trade Union’s concern about job losses locally.
In April 2009 Icasa decided that the transaction did not require its prior approval.
In early May 2009, Cosatu filed court papers asking for the decision of the authority to be set aside.
“Whereas the authority awaits the court outcome on its decision, it is concerned that the court proceedings will only commence long after the transaction has taken place. The authority believes that the transaction of this nature should take place in an environment conducive to regulatory certainty. After careful consideration thereof, the authority has decided to rescind its previous decision,” said Icasa.
Icasa says it finds it appropriate that a public process be followed to allow all interested parties to be heard and envisaged public hearings will take place by mid-June 2009.
A notice inviting stakeholders to make written comments will be issued in due course, said Icasa.
“This is a great victory for the people of South Africa,” said Cosatu in a statement.
Cosatu says Icasa has “very wisely decided” – following Cosatu’s application to the High Court asking for their previous decision to be set aside – that in the interest of transparency it finds it appropriate that a public process be followed to allow all interested parties to be heard and that these envisaged public hearings will take place by mid-June 2009.
Cosatu says it is still consulting with its lawyers on possible court action to interdict the deal, but hopes that in the light of the Icasa decision, the whole issue will be reconsidered, that Vodacom will remain in South African hands and that workers’ jobs will be safeguarded.
Vodacom JSE listing discussion
Loading ...