Two weeks after acquiring a 13.91% stake in Vodacom (JSE:VOD) from the national treasury, a South African government pension fund is to place 1.7% of the local cellco on the market.
Acting on behalf of the Government Employees Pension Fund (GEPF),…
Two weeks after acquiring a 13.91% stake in Vodacom (JSE:VOD) from the national treasury, a South African government pension fund is to place 1.7% of the local cellco on the market.
Acting on behalf of the Government Employees Pension Fund (GEPF), the Public Investment Corporation Limited (PIC) has appointed Deutsche Bank as sole bookrunner to sell 25 million ordinary shares in Vodacom Group, according to a stock exchange filing. The stake is worth a reported R3.475bn (US$279m).
“This placement is in relation to a hedging activity in respect of certain risk mitigation arrangements entered into by Merrill Lynch International with the GEPF,” read the filing, without providing further details.
Following the transaction, PIC has agreed to a lock-up of 60 days on its remaining stake.
A spokesperson for PIC declined to provide further details.
On 1 July, South Africa’s treasury sold its 13.91% stake in Vodacom to PIC for a reported R25bn (US$2bn), saying it planned to reinvest R23bn (US$1.88bn) into troubled electricity utility Eskom.
