Tanzania’s richest man, Rostam Azizi, has agreed to sell off a significant chunk of his stake in mobile telecoms outfit Vodacom Tanzania to Vodacom Group Ltd, the African subsidiary of British telecoms giant Vodafone VOD -0.08%
Group PLC, according to a statement from Vodacom.
Azizi, 49, is the controlling shareholder of Cavalry Holdings, a Jersey island-registered private investment company through which he owned a 35% stake in Vodacom Tanzania. He will be selling a 17.2% stake for $242 million, while retaining a 17.8% stake in the company.
The Johannesburg Stock Exchange-listed Vodacom Group currently owns 65% of Vodacom Tanzania, the country’s largest mobile telecoms network, with over 9.5 million active subscribers. If the deal is approved by South Africa’s Reserve Bank, Vodacom Group will own 82.2% of the company.
“The transaction allows Vodacom to increase its exposure to one of Vodacom’s key investments in sub-Saharan Africa,” the company said in a press statement. “Vodacom Tanzania has been Vodacom’s most successful investment outside of South Africa to date.”
Vodacom said it will acquire the 17.2% interest in Vodacom Tanzania Limited through the subscription for new shares in Cavalry Holdings, consequently diluting Cavalry’s existing shareholders’ interest in Cavalry from 100% to 51%.
This year, Rostam Azizi, a fifth generation Tanzanian of Persian origin, debuted on FORBES annual rankings of Africa’s Richest People with a net worth estimated at $1 billion. Azizi has over the years built a reputation as one of East Africa’s shrewdest investors. Apart from his Vodacom stake, he owns Caspian Mining, a contract mining company that provides mining services to BHP Billiton BHP +1.28% and Barrick Gold
ABX +0.92%, and a
minority stake in a container terminal in Tanzania. He also owns extensive real estate in Tanzania, Dubai, Oman and Lebanon. Azizi did not respond to a request for comment about the Vodacom Tanzania sale.
source: Forbes