Telkom today said that it has been offered R22.5bn by Vodafone for a 15% stake in Vodacom. This means that Vodafone will own 65% of Vodacom.
The remaining 35% will be unbundled to Telkom shareholders and listed on the JSE.
Vodafone said in a media statement that it “notes the announcement issued by Telkom SA Limited and confirms that it has made a non-binding proposal to acquire a 15% stake in Vodacom Group Limited for a cash consideration of ZAR 22.5 billion less the attributable net debt of Vodacom at the date of signing subject to, inter alia, the listing and unbundling of Telkom’s remaining stake of 35% in Vodacom to Telkom shareholders.”
“The Proposed Transaction would result in Vodafone owning 65% of an attractive asset with strong market positions in South Africa, Democratic Republic of Congo, Lesotho, Mozambique and Tanzania,” Vodafone said.
The execution of the Proposed Transaction remains subject to a number of conditions, including the successful negotiation and agreement of final transaction documents.