Vodafone bids for part of Telkom's Vodacom stake

By Marius Bosch and Gugulakhe Lourie

JOHANNESBURG (Reuters) - Vodafone has offered to buy a further 12.5 percent stake in mobile operator Vodacom for 18.75 billion rand (1.2 billion pounds) from South Africa's Telkom, while Mvelaphanda Group may lead a bid for Telkom without its Vodacom stake.

Shares in Telkom jumped over 15 percent to 158 rand, the highest level in six months and valuing the company at 82.28 billion rand. Telkom shares closed 8.4 percent higher at 148.49 rand in volume 5.4 times the 30-day daily average.

The transactions around Telkom signals further consolidation in the South African telecoms sector after sub-Saharan Africa's biggest mobile phone operator MTN said last week it was in talks with India's Reliance Communications over a transaction that could create a $66 billion (33.6 billion pound) emerging markets telecoms group.

South African newspaper reports said the bid by a consortium led by Mvelaphanda Group -- headed by prominent black businessman Tokyo Sexwale who is one of South Africa's richest men -- may be worth up to 90 billion rand.

Vodafone said its bid was conditional on Telkom unbundling or spinning off its remaining 37.5 percent stake in Vodacom to its existing shareholders. Vodacom is jointly owned by Vodafone and Telkom, Africa's biggest fixed-line telephone company.

"We can confirm that we're in discussions with Telkom to buy an additional stake in Vodacom. However there are no assurances that such discussions will lead to a transaction being concluded," a Vodafone spokesman said.

The South African government owns 38 percent of Telkom, state pension administrator Public Investment Corporation (PIC) 15 percent and black investment group the Elephant Consortium another 6 percent.

A Vodacom source said Vodafone wanted to obtain a controlling stake in Vodacom without having to dilute its equity stake by selling off a part of the South African mobile phone group to black investors under the country's black economic empowerment (BEE) programme.