Vodafone to take control of South Africa's Vodacom

LONDON - Vodafone Group PLC, the world's biggest mobile phone provider by sales, announced Thursday it is planning to take majority control of South Africa's largest mobile phone company, Vodacom.

Vodafone, which currently owns 50 percent of Vodacom Group Limited, said it had agreed to buy a further 15 percent stake in the South African mobile company from South African telecommunications company Telkom SA for 22.5 billion rand ($2.28 billion).

If approved by shareholders and regulators, the deal will leave England-based Vodafone owning a controlling 65 percent share in Vodacom. Telkom's shareholders — including the government of South Africa — will own the remaining 35 percent of the company.

In addition to being South Africa's biggest mobile provider, Vodacom is also the largest mobile operator in Tanzania, Lesotho and the Democratic Republic of Congo.

Vodafone Chief Executive Vittorio Colao said the company was excited about increasing its presence across the African continent through the acquisition.

"We look forward to playing a greater role in delivering the broader social benefits of mobile telecommunications in the continent," he said.

Shares in Vodafone declined 3 percent on the London Stock Exchange, as investors priced the cost of the anticipated purchase into the company's value.

Vodacom will be listed on the Johannesburg Stock Exchange when the deal completes, which is expected to happen early next year.

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