Opportunities

Vodacom set for JSE debut

4 March 2009

The Vodacom Group will debut on the main board of the JSE on 5 May, as part of a deal with fixed-line operator Telkom that will see British cellular giant Vodafone taking operational control of what will become one of South Africa's largest listed companies.

As part of the R22-billion deal, Telkom will dispose of its 50% holding in Vodacom by selling a 15% stake to Vodafone and demerging the remaining 35% to its shareholders.

"The listing of Vodacom will offer investors direct access to a well-established communications company with a unique platform for growth," Vodacom Group CEO Pieter Uys said in a statement this week.

"This is an important event in the history of the company, as we become a public company whilst also continuing to benefit from being part of the Vodafone Group."

While Vodacom will benefit from access to Vodafone's expertise, product innovation, marketing and centralised procurement, Vodafone has agreed that it will use Vodacom as its exclusive expansion vehicle in sub-Saharan Africa.

Growth strategy

Vodacom aims to become the leading "total communications provider" in sub-Saharan Africa. While continuing to grow its mobile business, the company also wants to lead in broadband connectivity and data services, and to develop its converged services offerings to consumers and corporate customers.

The company is already the largest provider of mobile broadband services in South Africa, and seeks to expand throughout the region through licence and acquisition opportunities.

The recent acquisition of Gateway provides Vodacom with an established platform into Africa on which to benefit from the growing demand for carrier connectivity and high-quality corporate telecommunications services.

"We are committed to entrenching our position as a leader in the markets in which we operate," said Uys. "We will do this by continuing to provide a first-rate service to our customers and offering new and innovative products."

'Number one'

Uys said Vodacom was the "number one" telecommunications brand in South Africa, with high-quality networks and coverage, and an "unparalleled track record for innovation" that has led to the deployment of many new technologies locally.

"We have an extensive distribution network with some 25 000 points of sale in South Africa alone," he said. "I believe we are very well positioned for the future."

BEE status unchanged

The listing of Vodacom Group will not have any impact on the black economic empowerment (BEE) shareholding interests in Vodacom South Africa. Black public interest held through the YeboYethu scheme will remain at 3.44% in Vodacom South Africa, the company said, as part of the 6.25% overall BEE stake.

SAinfo reporter