South Africa’s Competition Tribunal on Wednesday approved Vodafone’s bid to buy a 15% stake in local operator Vodacom in a multibillion-dollar deal, paving the way for the second-largest investment in the country since the end of apartheid.
In the deal, worth about $2,4-billion (R14,5-billion), British mobile group Vodafone has been given the green light to make an offer to buy out ordinary shares in Venfin, which owns 15% of local mobile operator Vodacom.
The Venfin share buy-out will boost Vodafone’s shareholding to 50% in Vodacom, one of three cellular providers in Africa’s largest economy.
”On successful completion of the transaction, Vodafone will dispose of all Venfin’s non-Vodacom investments,” the Competition Tribunal said in a statement, issued in Johannesburg.
The largest investment yet made in post-apartheid South Africa was that between Barclays, Britain’s third-largest bank, and South African retail banking group Absa in July.
The deal to create Africa’s biggest bank was valued at $4,4-billion (R26,7-billion) at the time. — Sapa-AFP