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Vodacom Group and YeboYethu today completed a R16,4-billion BEE transaction, the biggest BEE deal in the ICT sector to date.

Cliffe Dekker Hofmeyr (CDH) acted as lead legal advisor to both Vodacom and YeboYethu and Verushca Pillay, from CDH’s BEE sector and director in the corporate and commercial practice, explains how the deal has played a vital role in progressing transformation.

“In addition to delivering the best returns to shareholders of any listed BEE deal, the deal will see significant value being delivered to over 85 000 black shareholders and 8 500 Vodacom staff. By ultimately transferring economic ownership into the hands of black South Africans, deals of this nature are vehicles for the practical fulfilment of transformation,” she says.

Ncubeko Mbambisa, director in the corporate and commercial practice of CDH, who also advised on the deal, adds that the current YeboYethu deal proved to be extremely profitable for investors.

“Through YeboYethu, for each share owned – having been originally issued at only R25 each – investors received a dividend of R73 and will now have a stake in Vodacom Group. The deal provides shareholders with greater exposure to foreign investments through Vodacom Group shares.”