With the news ‘Vodafone agrees to buy 15% in Vodacom for 22.5 billion rand’ hitting the headlines, South Africa’s Telkom shares mounts 5%. According to British’s Vodafone,  it offered 22.5 billion rand in cash, minus Vodacom’s net debt, for a further 15 percent stake, which will give it control of South Africa’s biggest mobile operator and a foothold in fast-growing African markets. Telkom said that as part of the deal, it would unbundle its remaining 35 percent stake in Vodacom to shareholders by listing it on the Johannesburg stock exchange.

Earlier Vodafone offered to buy a further 12.5 percent in Vodacom for 18.75 billion rand. Vodafone has shadowed rival MTN across the continent in part due to the 50-50 ownership and a constraining shareholder pact. With this deal Vodafone have the freedom to expand and give tough competition to MTN. It will also let Telkom to purchase another operator and fully integrate its wireless and fixed-line businesses.

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