South Africa's Vodacom to boost black ownership

Vodacom BEE StorySouth Africa's Vodacom Group will increase the stake held by black shareholders by up to 6.25 per cent in a black empowerment transaction worth US$1.34bn

The company said that current black shareholders in Vodacom South Africa and a new staff scheme would exchange their current shareholding for a stake of between 5.8 per cent and 6.25 per cent in the company.

The YeboYethu empowerment structure will buy shares at the price of 152.50 rand per Vodacom share.

Meeting government rules on black ownership makes a company more likely to qualify for government tenders.

The existing scheme, which will unwind in October and will increase Vodacom Group’s black ownership to 20 per cent, delivered a return of US$ 575mn, Vodacom said.

Companies in South Africa are required to help increase black ownership to sell shares to groups who were excluded before 1994 under apartheid’s white minority rule.

twn Are you sure that you want to switch to desktop version?