In the pursuit of boosting its presence in the continent, Vodafone has offered £1.2bn deal to take over Vodacom, the largest mobile phone operator of South Africa. Vodafone has 50 per cent stake in Vodacom and wants to increase its shareholding in the venture by 12.5 per cent.

Vodafone has been planning to expand its business in the African market where mobile phone is the only means of communication for the large population. Its attempt for the de-merger of Vodacom did not meet with success due to the failure of takeover talks last year, between Telkom and MTN, the largest mobile phone operator of the continent.

Vodafone’s chief executive, Arun Sarin, at the announcement of annual results, made it clear that Vodafone does not agree with the estimated £19bn price tag set by MTN’s advisers. He also expressed Vodafone’s resolve to increase its exposure in Africa.

Sarin is confident of bulking up its African assets through a number of smaller deals. Increase in Vodacom stake would give control of operations in Tanzania, central Africa, Mozambique and Lesotho. Vodafone could buy out the whole business subject to diluting its stakes as per South Africa’s black ownership law. Vodafone would announce its plans to comply with the law, this month.

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