Vodafone has entered talks to raise its stake in South African mobile phone operator Vodacom by paying up to 16 billion rand ($2.4 billion) for an additional 15 per cent interest.
Vodafone said today the talks are being held with the Rembrandt Trust, which controls the unlisted "B" ordinary shares in VenFin, an investment holding company listed on the Johannesburg stock market.
Vodafone said it intends to acquire the VenFin shares in the market today at up to 47.25 rand per share. The move would increase Vodafone's effective shareholding in Vodacom, which is 50 per cent owned by Telcom TKGJ.J, from 35 per cent to 50 per cent.
Vodafone said the increased stake would give it more exposure to the growing South African market.
The company said the acquisition would have no impact on its share buyback programme or credit ratings. The transaction requires regulatory approval and is expected to close in the first quarter of 2006, Vodafone said.