South Africa’s Vodacom has closed its acquisition of a 17.2% indirect stake in Vodacom Tanzania, boosting its holding from 65% to 82.2%.
The deal, which required approval from the South African Reserve Bank, closed yesterday after all conditions were…
South Africa’s Vodacom has closed its acquisition of a 17.2% indirect stake in Vodacom Tanzania, boosting its holding from 65% to 82.2%.
The deal, which required approval from the South African Reserve Bank, closed yesterday after all conditions were fulfilled.
In November last year, Vodacom agreed to buy 49% of minority shareholder Cavalry Holdings, which owns 30% of the Tanzanian operator, for R2.46bn (US$243m).
It therefore gave it an additional indirect 17.2% interest in Vodacom Tanzania.
Vodacom said at the time it wanted to boost its stake in the subsidiary to have more exposure to the business, which it described as its most successful investment outside of the South African operations.
In a statement, the South African incumbent pointed to Tanzania’s 57% mobile penetration rate as another reason for the move, saying it was a high-growth market. Vodacom Tanzania, the leading operator in the country, has more than 10 million mobile subscribers and grew its service revenue by 19.1% in the six months leading up to September, according to Vodacom. It competes with five other operators in the country.
UBS gave a fairness opinion to Vodacom shareholders.