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VENTURES AFRICA – JSE-listed mobile phone operator, Vodacom, has acquired an additional 17, 2 percent stake in Vodacom Tanzania for R2.4 billion ($236,5m).
Vodacom Tanzania is the east African country’s 14-year-old leading mobile phone business with 10 million mobile clients. .
This acquisition will increase Vodacom’s total economic interest in Vodacom Tanzania from 65 percent to 82, 2 percent, giving it total exposure to Tanzania, a high growth market in the region.
The deal will also permit Vodacom to upturn its spotlight on one of its most important investments in sub-Saharan Africa.
Vodacom Tanzania has been Vodacom’s most prosperous investment outside Vodacom’s home base of South Africa. It has a mobile customer base of 10 million.
Tanzania is an appealing market for Vodacom, whose African expansion strategy has never been as successful and robust as its home peer, JSE-listed MTN.
As of September this year, Tanzania’s mobile penetration was standing at only 57 percent.
The deal should be completed before the end of the current financial year and is subject to the fulfilment of certain conditions and approvals by the competition authorities.
Vodacom will use cash and other debt facilities to pay for the stake.