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South Africa's Vodacom Group to increase black shareholding

Vodacom Group Ltd.'s Vodacom South Africa, the country's largest mobile network operator, is unwinding a decade-old Black Economic Empowerment transaction and replacing it with a new ownership structure that increases black shareholding in the parent company.

Under the new transaction, valued at up to 17.5 billion rand, the company's current BEE partners — Royal Bafokeng Holdings Pty. Ltd., Thebe Investment Corporation Pty. Ltd., YeboYethu (RF) Ltd. — will exchange their current stakes for a shareholding of between 5.8% and 6.25% in Vodacom Group. As part of the transaction, the BEE stakes will be combined into a new YeboYethu BEE structure that will own shares in Vodacom Group.

The new BEE transaction, which has a 10-year funding term, will be funded "through a combination of third-party and vendor financing, reinvested equity of R4.5 billion from the existing BEE partners and facilitation from Vodacom Group."

The deal is subject to regulatory and shareholder approvals, with YeboYethu shareholders expected to vote and approve the transaction at a general meeting of shareholders to be held presumably Aug. 17, according to a separate statement.

As of June 8, US$1 was equivalent to 13.09 rand.