SA govt ponders sale of R28bn Vodacom stake

The government is said to be keen to sell the stake to raise funds for state power utility Eskom.

South Africa’s government is considering selling its $2,5 billion stake in the local unit of Vodafone Plc. Picture: EPA.

JOHANNESBURG - South Africa's government is considering selling its $2,5 billion stake in the local unit of Vodafone Plc to raise funds for state power utility Eskom, Bloomberg News reported on Wednesday.

The government has approached financial advisers about the possible sale of its 13,9 percent stake in Vodacom Group, Bloomberg said, citing four people familiar with the matter.

The stake is likely to be sold to institutional investors although a deal is not imminent, Bloomberg said, citing one of the sources.

The government's stake in Vodacom, the dominant mobile operator in South Africa, is worth around R28 billion, according to Reuters data.

Vodacom spokesman Richard Boorman said the company was "not aware of any developments along these lines".