Government sold Vodacom stake for a discount

The Public Investment Corporation (PIC) secured itself a 10% discount when it came to the government’s rescue by buying its 13.9% stake in cellphone operator Vodacom Group‚ Business Day has reported.

The stake was valued at R30bn at Wednesday’s close. The purchase is sufficient to finance the government’s promised R23bn cash injection to Eskom. Vodacom shares rose 2.8% to close at R142.56.

“We agreed on a discount (which is) normal for these kinds of transactions‚ considering there would have been an accelerated book build process to sell the asset‚” said Daniel Matjila‚ CEO of the PIC.

The government approached the PIC‚ along with other potential investors‚ and a price was agreed upon‚ said Mr Matjila.

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Government sold Vodacom stake for a discount