{South Africa’s government is exploring a sale of its 26 billion-rand ($2.3 billion) stake in mobile-phone company Vodacom Group Ltd. as it seeks funds to rescue state utility Eskom Holdings SOC Ltd., four people with knowledge of the matter said.}
The government has approached financial advisers about the possible disposal of its about 13.91 percent stake in Vodacom, controlled by Vodafone Group Plc (VOD), said the people, who asked not to be identified as the talks are private. The stake in the wireless carrier with the most subscribers in South Africa will probably be sold to institutional investors rather than to a private buyer, one of the people said, adding that a deal isn’t imminent.
Vodacom (VOD) shares fell as much as 3.4 percent in Johannesburg. A sale of the stake to Newbury, England-based Vodafone, which owns 65 percent of Johannesburg-based Vodacom, is one possibility, one of the people said.
“When government takes such decisions, it would have to handle information with extreme care, bearing in mind that some of the entities are listed and any decision involving them is market sensitive and is governed by strict laws and regulations which must be abided by at all times,” the Treasury said in an e-mailed response to questions. “At appropriate times government has an obligation to publish its decisions and explain their rationale.”
Government spokeswoman Phumla Williams and Siya Qoza, a spokesman for the communications ministry, didn’t immediately respond to e-mails and calls seeking comment.
“We’re not aware of any developments along these lines,” Vodacom spokesman Richard Boorman said by phone.
Bloomberg
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