South Africa’s PIC holds 10% stake in Vodacom Tanzania
25 August 2017
South Africa’s Public Investment Corporation (PIC) now holds a 10% stake in Vodacom Tanzania, following the conclusion of the mobile operator’s fully-subscribed initial public offering (IPO) earlier this month. Vodacom raised TZS476 billion (USD209 million) through the sale of 560 million shares, of which 60% were allocated to domestic buyers and the remaining 40% were bought by international investors. The East African reports that PIC, a government-owned investment firm, bought the entire 40% tranche of shares available to international investors, giving it an overall 10% stake in Vodacom Tanzania.
In June last year an amendment to the Electronic and Postal Communications Act of 2010 made it a legal requirement for Tanzania’s telecoms operators to float at least 25% of their shares on the Dar es Salaam Stock Exchange (DSE). Vodacom launched its IPO in March this year, although it was only open to local investors. Following further legislative changes in June, the government has now allowed foreign investors to purchase shares in those telecoms operators that are required to sell a portion of their stock, while also exempting small telecoms companies with Application Services Licences from listing.