Government may be considering selling its stake in minority Vodacom as it seeks funding to rescue electricity supply utility Eskom, according to a report published on Wednesday.
The report on Bloomberg, a wires agency, quotes unnamed sources as saying that government has approached financial advisers about the possible disposal of its nearly 14% stake in the mobile operator.
At Vodacom’s market capitalisation on Wednesday afternoon, the stake is valued at R25,3bn.
However, Vodacom spokesman Richard Boorman says the company is not aware of any plan by government to sell its stake. Government spokesman Phumla Williams could not be reached for comment.
In September, Sapa reported that cabinet approved a package to close the funding gap at Eskom. Eskom would receive funding from leveraging non-strategic state assets to relieve the impact on consumers and strengthen the utility’s balance sheet. At the time, national treasury spokesman Phumza Macanda said the package was based on recommendations from an inter-ministerial committee which reviewed an extensive set of options available to ensure energy security. — © 2014 NewsCentral Media