SA government’s Vodacom share sale to PIC close

The South African government’s planned sale of its Vodacom stake to the Public Investment Corporation is close, Bloomberg reported.

According to Bloomberg, the sale will help the SA government raise funds for Eskom, which is facing financial challenges.

While the deal has not been completed, Bloomberg said: “an agreement could be reached soon and the stake won’t be sold by the government at a significant premium or discount to the current share price”.

National Treasury said in September 2014 that “it would dispose of non-strategic assets to provide capital for Eskom,” which is costing the country billions each month.

In January Reuters reported that the government was planning to inject $870 million (R9.9 billion) into Eskom, and that it may sell its stakes in Telkom and Vodacom to raise the money.

This followed a Bloomberg report in October 2014 that the government retained bankers to advise on the sale of its stake in Vodacom.

The South African government currently holds just under 14% of Vodacom assets, worth approximately R26.7 billion.

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SA government’s Vodacom share sale to PIC close