British mobile operator Vodafone has purchased another 11,5-million shares in South African investment holding group VenFin for R530,15-million, it was disclosed on Monday.
This brings the total number of shares the United Kingdom group has purchased in VenFin so far this month to about 25,4-million — worth almost R1,4-billion.
The additional 11,5-million shares were purchased on the open market at R46,10 per share on Friday.
Vodafone is seeking to acquire VenFin to gain control of its 15% stake in South African mobile operator Vodacom, which will take its own stake in the local cellphone company to 50%. The remaining 50% stake in Vodacom is owned by fixed-line monopoly Telkom.
Vodafone’s plan to increase its stake in Vodacom has been hailed as a vote of confidence in South Africa’s political landscape and economic prospects.
“Operating from the premise that the deal does materialise, it is good news for the currency to the extent that potential capital inflow will be happening at a time when the foreign trade deficit is slowly showing signs of pressure,” RMB economist Etienne le Roux said at the beginning of November, when the plan was announced.
“Following so soon after the Barclays/Absa transaction, it is also a sign that South Africa is becoming a preferred destination for foreign direct investment,” he said. — I-Net Bridge