Local market may be cool towards Vodacom sale, says analyst

Vodacom shares rocketed on Thursday amid growing speculation that its UK parent may be looking to sell the business.

The company’s stock rose as much as 10% on the news but the gains were pared to just more than 4% by the close, valuing the shares at R130.02 apiece.The initial stage considerations include merging the business with other operators, selling some assets in certain markets, or even selling a stake in the company, the people said.

Vodacom has a market value of about R270bn on the Johannesburg bourse after falling about 13% in the past 12 months. Vodafone is down more than 25% in the same period, valuing it at £28.1bn . In December, it was reported that Vodafone is considering selling its stake in Vodacom to e&, whose CEO, Egyptian national Hatem Dowidar, has previously held roles at Vodacom, Vodafone Group, and Vodafone Egypt.

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