formerly Etisalat, is exploring a potential investment in Vodacom Group as it seeks to boost its international footprint, people familiar with the matter said.
Vodafone owns roughly 60% of the company. Shares of Vodacom jumped 7.1% as of 1.38pm on Wednesday, on track for the biggest daily gain since March 2020, giving it a market value of about R248-billion. Vodafone shares pared earlier losses and were down 0.1% in London. Etisalat is also weighing the possibility of combining some of its own African operations with Vodacom or buying Vodacom assets in specific countries, the people said. It’s in the early stages of weighing which path to pursue, and could also consider other forms of cooperation, according to the people.
Deliberations are ongoing and there’s no certainty they’ll lead to any transactions. A spokesman for Etisalat said the group is scanning the market for opportunities in line with its strategy to grow in part through acquisitions, though there is “no such project in progress at the moment”.Etisalat disclosed in May that it had spent US$4.4-billion for a 9.8% stake in Vodafone. It announced Wednesday it had it increased its holding to 11%.