Vodafone notes the announcement today by Vodacom regarding its transaction that is intended to support incremental broad-based BEE (black economic empowerment) and ownership in Vodacom.
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. Consequently, it is expected that Vodafone’s shareholding in Vodacom will fall from 64.5% to approximately 60.5% .
 The Vodacom South Africa / Vodacom Group share exchange ratio will be based on the 60-day volume weighted average price of the Vodacom Group share on the last practicable date before the final approval of the Vodacom Group and YeboYethu (Vodacom South Africa BEE shareholders) circulars by the JSE, expected to be 3 July 2018. For further details please refer to the SENS announcement made today by Vodacom.
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Vodafone Group is one of the world’s largest telecommunications companies and provides a range of services including voice, messaging, data and fixed communications. Vodafone Group has mobile operations in 25 countries, partners with mobile networks in 46 more, and fixed broadband operations in 18 markets. As of 31 March 2018, Vodafone Group had 535.8 million mobile customers and 19.7 million fixed broadband customers, including India and all of the customers in Vodafone’s joint ventures and associates. For more information, please visit: www.vodafone.com.
Vodafone’s holding in Vodacom is currently directly held by Vodafone Investments (SA) Proprietary Limited (“VISA”) (56.18%) and Vodafone International Holdings B.V. (“VIHBV”) (8.32%). Upon dilution from 64.5% to 60.5%, the shareholdings will change to 52.70% by VISA and 7.80% by VIHBV.
Rothschild (South Africa) Proprietary Limited has acted as financial adviser to Vodafone.