South African government could sell stake in Vodacom

16 October 2014 | Kavit Majithia

The South African government is considering selling its 13.9% stake in Vodafone’s Vodacom subsidiary in the country.

The move is designed to raise additional funds for state-owned power company Eskom, with a sale of the government’s stake in Vodacom Group potentially being worth $2.5 billion.

According to Reuters, four people close to the situation have claimed that the government is in the initial stages of a stake sale.

A deal is reportedly not imminent, but the stake is likely to be sold to institutional investors, and the state has also reportedly approached a group of financial advisors.

A Vodacom spokesman claimed the company was “not aware of any developments along these lines”.

The Capacity Africa 2014 conference concludes today (October 16)  in Dar es Salaam, Tanzania.