S Africa's Vodacom opens on stock exchange
Tuesday, 19 May 2009
JOHANNESBURG, May 18 (AFP): South Africa's largest mobile operator Vodacom made its debut Monday on the Johannesburg stock market in one of the country's biggest listings after a last-ditch court battle failed to block the move.
The listing opened with shares at 59.50 rand (US$6.0, 5.0 euros) and climbed to 63.10 rand an hour later. Vodacom is reportedly expected to be the seventh-biggest company on the Johannesburg Securities Exchange.
"The listing provides investors with another highly respected company to add to their portfolios," said Russell Loubser, chief executive of the JSE.
The listing is part of a deal that gave Britain's Vodafone a majority 65 per cent stake in the company as the national fixed-line operator Telkom shed its shares.
"The decision of a substantial company like Vodacom Group to list on the JSE after the unbundling from Telkom Ltd adds credence to the exchange's focus on issuers and investors," Loubser said.
In November 2008, Vodafone announced that it had taken control of Vodacom from Telkom after increasing its stake to 65 per cent from 50 in a cash deal costing 1.4 billion pounds ($2.1 billion).
The JSE said over 1.40 billion shares are on issue. Fifty per cent of these shares will be traded in free float while the other half will be held by fund managers.
The value of the telecom giant is estimated around 80 billion rand ($9.20 billion).
The listing was preceded by Telkom's sale of a 15 per cent stake to Vodafone for 22.5 billion rand.
The listing opened with shares at 59.50 rand (US$6.0, 5.0 euros) and climbed to 63.10 rand an hour later. Vodacom is reportedly expected to be the seventh-biggest company on the Johannesburg Securities Exchange.
"The listing provides investors with another highly respected company to add to their portfolios," said Russell Loubser, chief executive of the JSE.
The listing is part of a deal that gave Britain's Vodafone a majority 65 per cent stake in the company as the national fixed-line operator Telkom shed its shares.
"The decision of a substantial company like Vodacom Group to list on the JSE after the unbundling from Telkom Ltd adds credence to the exchange's focus on issuers and investors," Loubser said.
In November 2008, Vodafone announced that it had taken control of Vodacom from Telkom after increasing its stake to 65 per cent from 50 in a cash deal costing 1.4 billion pounds ($2.1 billion).
The JSE said over 1.40 billion shares are on issue. Fifty per cent of these shares will be traded in free float while the other half will be held by fund managers.
The value of the telecom giant is estimated around 80 billion rand ($9.20 billion).
The listing was preceded by Telkom's sale of a 15 per cent stake to Vodafone for 22.5 billion rand.