(Adds comments from Vodafone Group about its ownership of Vodacom Group.)

By Maryam Cockar

Vodacom Group (VOD.JO) said Monday that black-economic-empowerment shareholders from its subsidiary, Vodacom SA, will acquire between 5.8% and 6.3% in Vodacom Group.

South African telecommunications company Vodacom Group said black-economic-empowerment shareholders in Vodacom SA will buy the shares through YeboYethu Ltd, Vodacom's black-economic-empowerment scheme, in a transaction worth 17.5 billion South African rand ($1.34 billion).

Vodacom Group said it will unwind the existing black-economic-empowerment transaction in Vodacom SA on Oct. 8.

Following the transaction, Vodacom Group's effective black-economic-empowerment shareholding will increase to about 20%.

Vodafone Group PLC (VOD.LN), the majority shareholder of Vodacom, said as a result of the transaction Vodacom Group will increase its ownership of Vodacom SA to 100% from 94% by issuing new Vodacom Group shares to its black-economic-empowerment investors. This will consequently reduce Vodafone's shareholding in Vodacom Group to about 61% from 65%.

Black economic empowerment is a program run by the South African government that seeks to redress the economic inequalities that arose from Apartheid.

Write to Maryam Cockar at maryam.cockar@dowjones.com

(END) Dow Jones Newswires

June 11, 2018 03:19 ET (07:19 GMT)

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