SA Gov considering sale of Vodacom stake

JOHANNESBURG (Reuters) – South Africa's government is considering selling its $2.5 billion stake in the local unit of Vodafone Plc to raise funds for state power utility Eskom, Bloomberg News reported on Wednesday.

The government has approached financial advisers about the possible sale of its 13.9 percent stake in Vodacom Group, Bloomberg said, citing four people familiar with the matter.

The stake is likely to be sold to institutional investors although a deal is not imminent, Bloomberg said, citing one of the sources.

The government's stake in Vodacom is worth around 28 billion rand ($2.5 billion), according to Reuters data.

Vodacom spokesman Richard Boorman said the company was "not aware of any developments along these lines".

Shares of Vodacom, the dominant mobile operator in South Africa, were down 1.9 percent at 124.20 rand at 0953 GMT.

(1 US dollar = 11.0694 South African rand)