06 Sep Vodacom tumbles 6% on Vodafone share sale plan
Vodacom shares tumbled more than 6% in early trading on Wednesday after parent, the UK-headquartered Vodafone, said it is selling a chunk of its shares worth almost R15bn to meet the JSE’s 20% free-float requirement.
Vodafone said it will sell about 90m shares in Vodacom at R165/share in an accelerated book-build process to institutional shareholders.
This is after Vodafone disposed of its 35% stake in Kenya’s Safaricom to Vodacom, in the process increasing its stake in Vodacom from 65% to nearly 70%.
The share sale plan will reduce Vodafone’s shareholding in the Johannesburg-headquartered Vodacom to approximately what it was prior to the Safaricom transaction.
Vodafone assured investors that it will continue to retain a “controlling majority shareholding” in Vodacom.
At 9.10am, Vodacom’s shares were trading 5.8% lower at R167.99. So far this year, the shares have gained 10.2%.
Source: NewsCentral Media (Tech Central)