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Vodafone holding in Vodacom to be diluted
Vodafone's South Africa operation Vodacom announced a transaction to support incremental broad-based black economic empowerment (BEE) and ownership in Vodacom on Monday.
The company said that as a result of the transaction, Vodacom's BEE ownership will move from Vodacom South Africa to Vodacom Group.
"Vodacom will increase its ownership of Vodacom South Africa from 93.75% to 100% and issue new Vodacom Group shares to its BEE investors, diluting existing Vodacom Group shareholders on a proportionate basis," Vodafone explained in its statement.
"Consequently, it is expected that Vodafone's shareholding in Vodacom will fall from 64.5% to approximately 60.5%."