Vodafone begins negotiations for extra 15% of Vodacom

Vodafone begins negotiations for extra 15% of Vodacom

TELECOMWORLDWIRE-3 November 2005-Vodafone begins negotiations for extra 15% of Vodacom(C)1994-2005 M2 COMMUNICATIONS LTD http://www.m2.com

Mobile communications company Vodafone has revealed that it has begun negotiations with the Rembrandt Trust for the acquisition of an extra 15% economic interest in Vodacom Group, a mobile operator in Africa.

The acquisition, for a net cash consideration of up to ZAR16bn (USD2.43bn), would result in Vodafone’s effective shareholding in Vodacom increasing to 50% from an existing 35%.

Vodacom had 17.2m customers at the end of June this year, including 14.3m in South Africa. Vodafone confirmed its intention to increase its presence in growth markets such as South Africa, Lesotho, Mozambique, Tanzania and Democratic Republic of Congo.

The acquisition is expected to complete in the first quarter 2006.

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