Voda makes offer to boost stake in Vodacom

UK-based operator Vodafone said Friday that it has made a Rand22.5bn ($2.5bn) bid for a further 15 per cent stake in South African operation Vodacom.

If successful, Vodafone would then own 65 per cent of an attractive asset with strong market positions in South Africa, Democratic Republic of Congo, Lesotho, Mozambique and Tanzania.

Vodacom is a 50/50 joint venture between Vodafone and local carrier Telkom, but the Big V has long been seeking to take over the South African JV and has come close on occasion, although talks with Telkom always seem to break down.

Last month saw the break down of merger talks between Telkom and Nigerian mobile operator Globacom, owned by business tycoon Mike Adenuga.

However, Vodafone’s latest proposed deal with Telkom also relies on the South African firm agreeing to unbundle its remaining stake of 35 per cent in Vodacom to Telkom shareholders.