Vodacom BEE
This cellular network provider should accelerate its empowerment transaction to avoid further damage to its reputation. The deal, which has already taken too long, would have avoided political interference if it had been concluded some time ago.
This week Vodacom once again issued a statement denying that there had been any political pressure. Nor had it put pressure on any potential black partners, the country’s leading cellular operator stressed. Vodacom emphasised that the majority of the participants in its black economic empowerment (BEE) transaction would be its staff and ordinary black citizens, “not simply a few prominent individuals”.
Exactly how much of the pie these broad-based groups will be allocated remains to be seen. Whether the R7.5 billion deal will still buy a 7.5 percent stake when the deal is finalised is also debatable.
Another nagging issue is that the deal is in line with the transformation charter for the information and communications technology sector, but this document has not yet been promulgated, as it has to be aligned with the broad-based BEE codes.
Vodacom insists it has not selected a preferred bidder, but the way it has defended itself lately leaves grounds for suspicion.
Business Report understands that the shortlisted bidders include a consortium led by Kagiso Trust Investments, another group containing Thebe Investment and a King Leruo Molotlegi-led consortium.
However, some of these consortiums appear to have been shortlisted to make up the numbers, while others have strong reputations and should not be underestimated.
But the country must wait six more months before Vodacom’s mystery BEE partner is finally revealed. This is far too long, so the cellular giant should expect more speculation until it is finalised.
Business Report
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