JOHANNESBURG, South Africa-Technology and telecommunications holding group Venfin announced that it would not be prepared to spend more than 1.5 billion rand (US$143.4 million) for the 5-percent stake in mobile network operator Vodacom. The share has been offered by finance and insurance group Hosken Consolidated Investments (HCI).
Dillie Malherbe, Venfin chief executive, said the 5-percent stake had been sold to Hosken toward the end of December 1995, and that the stake had been packaged and structured for the National Union of Mine Workers and the Clothing and Textile Workers Union, who were shareholders of HCI.
“We sold it to them for 90 million rand (US$8.6 million) at the end of 1995, so they will make approximately 1.5 billion rand. If there is no deal on a realistic basis, then so be it; 1.5billion rand is a fair price for that 5 percent,” said Malherbe.
Hosken approached Venfin to buy the Vodacom shares as the company had accumulated a substantial debt. Vodacom was the main contributor to Venfin’s earnings this year, accounting for 54 percent of earnings.
