Vodafone to sell 90 million Vodacom shares

Vodafone intends to sell approximately 90 million ordinary shares (5.2%) in Vodacom to institutional investors by way of an accelerated bookbuild process.

Following Vodacom’s recent acquisition of a 35% interest in Safaricom, Vodafone increased its ownership in Vodacom from 65.0% to 69.7%.

At the time of the deal, it was expected that Vodacom’s free float would decline to approximately 18%.

As part of the Safaricom transaction, Vodafone committed to Vodacom that it would sell a sufficient number of shares to ensure that Vodacom will meet the 20% minimum free float requirement on the JSE.

The move will also restore Vodafone’s shareholding in Vodacom to a percentage that is similar to what it held prior to the Safaricom transaction.

“Vodafone remains committed to Vodacom and intends to retain a controlling majority shareholding in Vodacom for the long term,” said Vodafone.

Now read: Vodacom acquires 34.94% indirect stake in Safaricom

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Vodafone to sell 90 million Vodacom shares