S.Africa's Vodacom to list on JSE in May

By Rebecca Harrison

JOHANNESBURG (Reuters) - South Africa's biggest mobile operator Vodacom will list shares in Johannesburg in May as part of a deal that will give Vodafone majority control and pave the way for faster expansion into Africa.

Vodacom will list on May 5 after joint-owner Telkom distributes a 35 percent stake to shareholders and finalises a deal selling a further 15 percent to Vodafone, giving it 65 percent and ending a shareholder pact that stifled growth.

Vodacom Chief Executive Pieter Uys declined to put a price on the stock, but one analyst forecast a value of about 85 billion rand, which comes at a sharp discount to the multiple Vodafone is paying for control but would still make it one of the biggest listings in South Africa.

Uys acknowledged times were tough for listings, but said Vodacom would appeal to investors looking for solid dividends -- it will pay 40 percent of its maiden headline earnings -- and exposure to markets with big growth potential.

Telkom shareholders will get one Vodacom share per Telkom share and its biggest investor, the South African government, has vowed to hold a 10 percent stake for at least a year.

Vodacom runs mobile networks in five African countries and bought Gateway Communications last year to beef up its data business, but has struggled to keep pace with the rapid expansion of rival MTN into Africa and the Middle East.

Investors hope the end of a restrictive shareholder pact between Vodafone and Telkom, plus the financial muscle the British group could offer, will help it capitalise on depressed asset prices to quickly push into new markets on the continent.

"Acquisitions will be a lot easier now, on the continent and also at home, where overlap with Telkom stopped them agressively getting into the business data space," said Rajay Ambekar, a telecoms analyst at Cape Town's Cadiz African Harvest.