Vodacom workers spurn BEE deal

Tiger Consortium wants the transaction stopped after it lost out on the deal to Thebe Investment Corporation and Royal Bafokeng Holdings, one of South Africa's richest tribal groupings due to a steady stream of royalties from platinum mines in the country's North West province.

The Johannesburg High Court will hear the matter on Friday and Vodacom, the country's biggest mobile phone operator, says it will defend its position.

"We will be defending the matter," Vodacom's spokesperson, Dot Field, said.

On April 25, Vodacom said it had selected Royal Bafokeng Holdings and Thebe Investment Corporation as preferred partners for the black economic empowerment (BEE) deal.

Vodacom rejected Tiger's bid, to the dissatisfaction of the consortium.

As part of the deal, Vodacom staff in South Africa would own 25%, 30% would be sold to black South Africans and Vodacom's black business partners, and 45% would be held by broad-based strategic partners.

Tiger - which also includes a Vodacom business partners' forum and other broad-based groups - was established in 2004 to acquire a BEE equity stake in Vodacom. The forum has 5 000 members who own Vodacom's 35 000 community service telephones and Vodashop and Vodacom4U franchises.

Vodacom, jointly owned by Vodafone and Telkom, expects to announce the terms of the BEE deal and the offer to the black public and business partners at the end of June.

Vodafone has offered to buy a further 12.5% stake in Vodacom for R18.75bn. The bid is conditional on Telkom unbundling or spinning off its remaining 37.5% stake in Vodacom to its existing shareholders.

- Reuters