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VODACOM GROUP LIMITED - Acquisition of Neotel

Release Date: 19/05/2014 07:30
Code(s): VOD     PDF:  
Wrap Text
Acquisition of Neotel

Vodacom Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1993/005461/06
(ISIN: ZAE000132577 Share Code: VOD)
(ISIN: ZAG000106063 JSE Code: VOD008)
(ADR code VDMCY)
(ISIN US9258D2009)
("Vodacom" or "the Company")

ACQUISITION OF NEOTEL

Further to the announcement on 30 September 2013, shareholders of the
Company ("Shareholders") are advised that Vodacom has entered into an
agreement with the shareholders of Neotel Proprietary Limited (“Neotel”)
under the terms of which Vodacom will acquire 100% of the issued share
capital in and shareholder loan claims against Neotel for a cash consideration
equivalent to an enterprise value of ZAR 7.0bn (the "Transaction"). Vodacom
will fund the acquisition through available cash resources and existing credit
facilities. The Transaction remains subject to the fulfilment of a number of
conditions precedent. In particular, the transaction remains subject to
applicable regulatory approvals.

Neotel is South Africa’s second largest fixed telecommunications operator. It
provides a range of value-added voice, internet and data services for
businesses and retail customers using its Next Generation IP Network.

Vodacom’s customer base will benefit from Neotel’s extensive fibre assets
and enterprise capabilities which will allow Vodacom to accelerate its fixed
enterprise strategy and stimulate greater competition in the South African
fixed telecommunications sector. The combined entity will be able to offer an
expanded product range and, as a consequence, enhanced customer
choice. Neotel also has access to 2 x 12 MHz of 1800 MHz spectrum, 2 x 5
MHz of 800 MHz spectrum and 2 x 28 MHz of 3.5 GHz spectrum.

The transaction is expected to close before the end of the current financial
year, although will be dependent of the timing of the requisite regulatory
approvals.

The Transaction is not a categorised transaction in terms of the JSE Listings
Requirements.

Midrand
19 May 2014
Sponsor: UBS

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