Government investment manager, the Public Investment Corp (PIC), has finalised its acquisition of the state’s 13,9% equity stake in Vodacom.

Government is set to use the proceeds of the sale to the PIC to help fund Eskom.

At the current share price, the PIC’s newly acquired 13,9% slice of Vodacom is worth just over R30bn.

The PIC acquired a first tranche of Vodacom from government in July 2015.

“This transaction is of significance in allowing the government of South Africa, as part of selling its noncore assets, to use the proceeds towards priority investments such as energy,” the PIC said in a statement.

Also, the deal assists the PIC with “portfolio diversification, which is in line with the its investment mandate and objectives”.

“Furthermore, PIC’s clients stand to benefit from this transaction as Vodacom is a well-managed blue-chip South African company with credible exposure in the rest of Africa and its operations are underpinned by its strong corporate governance practices.”

It said it continues to regard the telecommunications sector as a key driver of both social and economic development.

“The PIC is an investor with a tilt towards developmental investing and with this transaction we know that it will not only bring about the requisite financial returns, but it will also contribute towards our social returns objectives,” said PIC CEO Daniel Matjila.