South African court to rule Sunday on Vodacom listing

18 May, 2009

A South African court will decide on Sunday whether this week's listing of mobile phone company Vodacom can proceed after last-minute objections from the industry regulator and a powerful trade union group.
Pretoria's North Gauteng High Court said it would make a ruling by 7 pm (1700 GMT) on the COSATU union body's request for an injunction blocking Monday's listing - which would be one of the Johannesburg bourse's biggest.
Halting the deal on its eve would deal a huge blow to South Africa's credentials as an investor-friendly emerging market and intensify fears of resurgent union clout under new president Jacob Zuma.
The listing of Vodacom, which some analysts have valued at more than 70 billion rand ($8.1 billion), is the final part of a plan by fixed-line operator Telkom to get rid of its 50 percent stake in the country's biggest mobile operator.
Under the plan, Britain's Vodafone has agreed to buy a 15 percent stake from Telkom for 22.5 billion rand, giving it a controlling 65 percent holding. Telkom will then distribute its remaining 35 percent to shareholders.

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