Vodacom unveils BEE partners

Johannesburg, 25 Apr 2008

Vodacom has announced that Royal Bafokeng Holdings and Thebe Investment Corporation will be the company's "preferred strategic partners" in its broad-based black economic empowerment (BBBEE) transaction.

The transaction has been mired in controversy, with the identity of the preferred partners the subject of much speculation in the media.

The Amandla Amoya consortium, widely believed to have led the short-list of potential partners, came apart at the seams as members tried to exit the grouping and bid individually. This, insiders say, was because consortium leader Bulelani Ngcuka lost favour with SA's ruling party, the ANC. Vodacom repeatedly denied these allegations of political pressure.

Going black

This afternoon Vodacom Group CEO Alan Knott-Craig revealed Royal Bafokeng and Thebe had been selected following a "comprehensive partner selection process".

Royal Bafokeng Holdings is the primary investment vehicle of the Royal Bafokeng Nation, a 300 000-strong black community situated in the North West Province. Its investment portfolio covers the resources, industrial, services and financial markets.

Established in 1992, Thebe is one of the pioneers of broad-based BEE in South Africa. Its main shareholder is the Batho Batho Trust, a community based organisation established to promote the social and economic development of black people and women. Thebe's investment portfolio spans healthcare, resources, media, financial services, housing and education.

Knott-Craig additionally revealed how the BEE stake is to be divided. "The BEE transaction will comprise three participant groupings: all Vodacom South African staff will receive 25% of the stake; broad-based black South African public and Vodacom black business partners, 30%; and broad-based strategic partners, 45%," he outlined.

It is anticipated that an announcement regarding the terms of the BEE transaction and the offer to the black public and business partners will be made at the end of June 2008, with the black public offer opening shortly thereafter.

Vodacom says it will not be able to provide any further information on the transaction until this date.