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Black South African investors bidding for PIC stake in Vodacom

The sale would help boost the mobile-phone company’s diversity profile.

The Public Investment Corp, which manages the bulk of the pension money of South African government workers, is in talks with various black investors who are seeking to buy a stake in Vodacom Group Ltd., PIC Chief Executive Officer Dan Matjila said.

The government last year sold its 14% stake in Johannesburg-based Vodacom, the largest wireless operator in South Africa, for about R25 billion ($1.8 billion) to raise funds for its power utility. A sale of some of the PIC shares to black investors would help boost the mobile-phone company’s diversity profile. This would help the company meet South Africa’s push for increased black ownership of industries to address the legacy of whites-only rule that deprived the black majority of economic opportunities.

“We’d be happy if the shares are in the hands of black investors,” Matjila said. “It will enhance the transformation profile of Vodacom.”

Some of the black investor groups are raising money, while others have asked the PIC to finance them, he said, declining to give further details. The PIC has 1.85 trillion rand in assets, of which 88% comes from the Government Employees Pension Fund.

Romeo Kumalo, the former chief operating officer of Vodacom’s international operations, is part of a black economic empowerment group bidding to buy a portion of the South African mobile-phone company, the Johannesburg-based Mail & Guardian newspaper reported on Friday, citing three unidentified people familiar with the transaction.

© 2016 Bloomberg

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Not this tired same old nonsense of ‘black South African’s bidding for …’ for this or that. IF, you look at these deals realistically, I am almost certain that it is not even 50% of earmarked South Africans who are participating. It is very common place for one or two well connected people to raise money from PIC and then use these public funds to acquire what is quickly turned into privately owned property. Normally, these two or a handful of visible and behind the scences people come up with some well thoughtout name that gives the impression that millions of people are beneficiaries when in actual fact they own over 80 -90% of the allocated shares and by extension wealth. As soon as the scheme is in the money, they are off with the loot and distribute a pittance to the 10% of (whatever community, it is they chose to exploit). They are the ones who are using the general black public as a token. PIC should have no reason to sell this stake, such stakes should be sold to the National Sovereign Wealth Fund that holds the investments long term for the wealth and welfare of all affected, not just a few fat cats!!!

End of comments.





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