Vodafone will be putting R22,5-billion into shareholders' pockets when it acquires an additional 15% stake in Vodacom from Telkom.

The transaction will increase Vodafone's shareholding in Vodacom from 50% to 65%. Vodacom Group will be listed on the Johannesburg Stock Exchange and the remaining 35% of its shares will be demerged to its shareholders.
The acquisition is subject to, among other conditions, approval by 75% of Telkom's shareholders and is interconditional upon Vodacom Group being listed on the JSE, and Telkom demerging the remaining 35% of Vodacom Group to Telkom's shareholders.
Telkom's two largest shareholders, the government and the Public Investment Corporation Limited, owning a combined 58%, have committed to vote in favour of the transaction and will become significant shareholders in Vodacom Group following the completion of the transaction. The government has agreed that it will retain a minimum shareholding of 10% in Vodacom for a period of 12 months after the listing on the JSE.
Vittorio Colao, chief executive of Vodafone, comments: "As a long-term investor in South Africa we are delighted to be increasing our shareholding in Vodacom Group, the country's leading mobile operator with a presence in four additional African markets.
"We will continue to support the management team in their strategy of transforming Vodacom into a full service provider in Africa and also look forward to playing a greater role in delivering the broader social benefits of mobile telecommunications in the continent.  We are confident that the transaction will deliver value
to our shareholders."