MI­NOR­ITY TAKE OUT

Finweek English Edition - - INVESTMENT -

Re­ports out of the US are that Voda­fone will sell its 45% stake in the joint ven­ture with Ver­i­zon for $130bn, a stag­ger­ing amount of money, which raises the ques­tion of what Voda­fone will do with it. My first thought goes to lo­cally listed Vo­da­com, in which Voda­fone owns a ma­jor­ity 65% stake. With a mar­ket cap of around R170bn, that 35% Voda­fone does not own is worth a rel­a­tively mod­est R60bn or around $6bn. So could it mount an of­fer to take out mi­nori­ties? Even with a chunky 50% pre­mium, it would cost more than around $9bn. The prob­lem is that the mi­nor­ity share­hold­ers are the SA Govern­ment at 13.9% and the PIC with 3.16%, mak­ing up al­most half of the mi­nori­ties and they would surely veto any deal that saw Vo­da­com be­ing delisted and be­com­ing 100% Bri­tish-owned.

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