Uncertain Stakes Of Vodacom To Vodafone

The Communication Workers’ Union is seeking to stop Telkom South Africa Ltd. from disposing of its Vodacom Group Ltd. stake, saying workers weren’t consulted on the transaction.

The labor union has served notices to Telkom, Vodacom, Vodafone Group Plc and South Africa’s Department of Communications that it will file an urgent court application to halt the transaction, the Johannesburg-based union said in a statement dated April 17. The CWU, as its known, has 29,000 members in the telecommunications industry in South Africa, according to the e-mail.

“CWU’s main bone of contention is the fact that the organization was not properly consulted” in breach of an agreement between the union and Telkom, the CWU said. Telkom will oppose the application, the Pretoria-based company said in an e-mailed response today. Spokespeople at Vodacom, Vodafone and the communications ministry weren’t immediately able to comment when contacted by Bloomberg News.

Telkom, Africa’s largest fixed line operator, is selling a 15 percent stake in Vodacom to Vodafone, which already holds 50 percent of the largest provider of mobile-phone services to South Africans. Telkom’s remaining 35 percent will be spun off to shareholders by way of a Vodacom listing on the Johannesburg stock exchange. The listing date was moved to May 18 from May 3, Telkom said April 17, without giving reasons for the delay.

Nicky Smith
nsmith38@bloomberg.net