South Africa’s Public Investment Fund (PIC), which manages civil servant pension funds, said on Tuesday it planned to sell a part of the stake it recently acquired in mobile phone firm Vodacom.
The government announced two weeks ago that it had sold its 13.91 percent holding in Vodacom to the PIC at a 10 percent discount to market prices to raise funds for cash-strapped power utility Eskom.
The PIC said in a statement that it planned to sell 25 million Vodacom shares, representing about 1.7 percent of the company’s share capital, with Deutsche Bank AG, London branch, as the sole bookrunner.
At Tuesday’s closing price of 139 rand, 25 million Vodacom shares would be worth 3.475 billion rand ($279 million) – still about 10 percent more than the PIC paid.
“Subsequent to this transaction, PIC has agreed to a lock-up of 60 days on its remaining stake,” it said.