Vodacom: Tanzanian stake raised to 82.2%

Vodacom would acquire an additional 17.2 percent interest in Vodacom Tanzania by buying a stake in Cavalry Holdings, which has an interest in the Tanzanian unit, for nearly R2.5 billion, the company said yesterday. Vodacom would subscribe for new shares in Cavalry, a private investment company, and dilute the stake held by the latter’s shareholders in Cavalry from 100 percent to 51 percent. Vodacom will pay R2.5bn cash for the shares using existing cash resources and debt facilities. The purchase boosts Vodacom’s economic interest in the Tanzanian unit to 82.2 percent from 65 percent. Vodacom Tanzania is its most successful unit outside its home base, South Africa. Conditions to complete the deal include approval by the Reserve Bank. The shares rose 1.18 percent to R123.89. – Asha Speckman