November 7, 2016
Vodafone has agreed terms to take control of South African mobile network Vodacom, ending months of negotiations and speculation.
The world’s biggest mobile phone group will buy an extra 15% stake in Vodacom.
Added to its current 50% stake, this gives Vodafone overall control in Vodacom’s boardroom.
Vodafone is buying the $2.3 billion share from South African landline provider Telkom, who until now also owned a 50% stake in Vodacom.
Vodafone’s takeover of Vodacom is subject to Telkom listing its remaining 35% of shares on the South African stock exchange.
In addition, the South African government will retain a minimum 10% stake in Vodacom for the next twelve months.
Vodafone chief executive Vittorio Colao said the company is ‘looking forward’ to playing an even bigger role providing mobile communications services in Africa following its takeover of Vodacom.
Vodacom has the largest customer base of any mobile phone company in Africa, with operations in Tanzania, Lesotho, and Congo.
In recent years, Vodafone has been looking to expand further into emerging markets to combat a consumer spending slump in industrialised nations.
Over the past 24 months Vodafone has expanded into Turkey, India, Qatar, and Ghana.
Vodafone shares fell 5% following the announcement.