JOHANNESBURG, June 11 (Reuters) - South Africa’s Vodacom Group said on Monday it will increase the stake held by black shareholders by up to 6.25 percent in a 17.5 billion rand ($1.34 billion) black empowerment transaction.
Vodacom said current black shareholders in Vodacom South Africa and a newly formed staff scheme will exchange their current shareholding for a stake of between 5.8 percent and 6.25 percent in Vodacom Group.
A new empowerment structure called YeboYethu would acquire a 6.25 percent shareholding in Vodacom Group based on an illustrative price of 152.50 rand per Vodacom Group share.
The new deal will replace an existing scheme that is due to unwind in October and will increase Vodacom Group’s black ownership to 20 percent.
Under black economic empowerment rules, South African companies are encouraged to meet quotas on black ownership, employment and procurement as part of a drive to reverse decades of exclusion under apartheid.
$1 = 13.0129 rand Reporting by Tanisha Heiberg; editing by Jason Neely