Vodacom shed 7.86% on ito settle at R164.28 per share, negatively affected by the release of a SENS announcement which stated that Vodafone is selling 90mn ordinary shares in Vodacom. Vodafone is disposing of 5.2% of Vodacom’s ordinary share capital at a price of R165 per share to institutional investors. Thanks to the private placement, Vodafone once again owns approximately 64.5% of Vodacom’s ordinary share capital. The main reason for the placement was to restore Vodafone’s stake to around 65%, given that it increased its stake in Vodacom to 69.7% following the acquisition of a 35% stake in Safaricom.
On Tuesday, Vodacom ended 0.94% lower, following news that the group would no longer acquire Neotel. In the SENS announcement, Vodacom cited “regulatory complexities” and “certain conditions not being fulfilled” as the main reason for the breakdown in the deal. Vodacom first proposed acquiring Neotel two years ago, but the acquisition has been fraught with challenges from the beginning. This comes after the two parties agreed a restructured agreement on the 8th of December, after concerns were raised about Vodacom acquiring Neotel’s licenses and spectrum. Neotel now faces an uncertain future, with the group’s largest shareholder, Tata Communications, still looking to sell down its stake in the company.
Vodacom ended marginally higher on Wednesday, up 0.02% at R138.82, despite appearing in media headlines as the ‘Please Call Me’ court case nears its end. The dispute arose when Nkosana Makate, a trainee accountant for Vodacom in 2001, claimed to have invented the ‘Please Call Me’ idea and is now suing Vodacom for compensation. It has been estimated that the invention has generated about R70bn in revenue for Vodacom, and Makate wants a 15% cut. Vodacom has argued that Makate’s role was small and that Philip Geissler, who was head of product development at the time, was not authorized to enter into revenue-share agreements.
Continue reading Vodacom: “Please Call Me” may cost R10bn
Today, in the ongoing battle over the pricing of Mobile Termination Rates (MTR), Judge Haseena Mayat ruled in favour of MTN, Vodacom, Icasa, Telkom Mobile and Cell-C in a confusing verdict where everyone seems to be both the winner and the loser!
Did I mention the legal battle would be “notoriously uncertain (and the verdict… surprising)”? I think I did in the 16th of Feb MTN coverage. Still, who would have expected this sort of tomfoolery from the South Gauteng High Court?