Vodacom's opening volumes on the JSE this morning mark the first steps of the last phase of its unbundling.
CEO Pieter Uys blew the kudu horn this morning, despite a last-ditch attempt by the Independent Communications Authority of SA (ICASA) and trade union Cosatu to sink what has been termed the largest listing on the JSE in years.
ICASA and the union launched an urgent application to the North Gauteng High Court at the weekend to interdict today's listing, following ICASA's last-minute decision to reverse its approval of a Vodafone takeover.
ICASA's decision plunged the rand by as much as 3% on Friday, and analysts have said the opposition to the transaction could lose SA its reputation of being a “foreign investment-friendly” country.
High starter
The bid to stop the process was overturned in court last night, and relieved executives from both Telkom and Vodacom watched this morning's ticker as Vodacom's opening shares started trade.
Vodacom's opening price of R59 climbed to R63 in the early hours of trade. At the time of publication, the share price had stabilised at R61.
“This feels like the right place to be at the right time. This listing has been in the making for 15 years,” said Uys during his opening address this morning.
The mobile business listed as one of the JSE's top 40 this morning, with Telkom retaining its position on the list. Vodacom's listed shareholding is Vodafone Holdings SA, at 44.90%; Vodafone Telecommunications Investments, at 20.10%; the South African government, 13.90%; and the Public Investment Corporation, owning 6.30%.
“Remember Reuben, we are now a customer,” said Uys to former shareholder, Telkom CEO Reuben September.
Telkom listed on the JSE in March 2003 with an opening value of R28. Analysts are watching Vodacom to see where the company's market capitalisation will land.
More to come?
Despite this morning's relieved celebrations, the R22.5 billion deal still has several hurdles to face.
Cosatu has not given up the fight to prevent the full handover of Vodacom to Vodafone, which is expected to be completed by 25 May. The trade union already has another court application pending, which was lodged earlier this month and challenges ICASA's original approval of the Vodacom-Vodafone transaction.
Both Telkom and Vodacom say they have been listed as respondents in the case and will defend it when the time comes.
Meanwhile, following the failed attempt to halt the transaction over the weekend, Cosatu says it will follow every legal route it can. “We will do everything legally possible to reverse this transaction,” says Cosatu spokesman Patrick Craven.
The trade union is threatening to boycott Vodacom's services.
Related stories:
Cosatu to launch Vodacom boycott
ICASA trips up Vodacom listing
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