Vodacom Group may consider a separate listing of its financial services business in South Africa to unlock value, seeking to address what CEO Shameel Joosub says is a stock market discount to the carrier’s sum-of-parts worth.

The overall company, which also includes operations in Tanzania and Mozambique, trades in Johannesburg and could look at whether a carve out of the financial services unit makes sense, he said in an interview on Monday.

“We are looking at how to give more disclosure so that the market gives us credit for our assets,” the CEO said. “If not, we will look at optionality on whether to list some,” he said.

The company, which last week agreed to buy a majority stake in Vodafone Group’s Egypt unit, is also separating its telecommunications towers portfolio into a new unit. The group won’t look to sell the masts but would rather seek partners to grow the business, Joosub said.

Vodacom is also looking for partners to grow fibre networks in operations outside of its home market, the CEO said. The company last week agreed to buy a minority stake in a vehicle housing South African fibre companies Vumatel and Dark Fibre Africa. The majority owner is a unit of Remgro, billionaire Johann Rupert’s investment firm.

More value

Joosub’s comments come as Africa-focused telecoms firms look to wring more value out of their continent-wide operations. Vodacom rival MTN Group is working on a deal to sell and lease back South African masts and has had its fintech business valued at R87-billion ahead of a potential spinoff next year.

The stock traded down 1.4% as of 4.46pm, and has gained 11% this year. By contrast, MTN has surged 164% in 2021 and surpassed Vodacom’s market capitalisation along the way.