Vodafone's £1.4bn South African call

VODAFONE is preparing to take control of South Africa's biggest mobile phone company Vodacom in a £1.4 billion investment.

The deal – not yet finalised – proposes to buy 15 per cent of shares from Telkom, the South African state-controlled company that owns half of Vodacom. It would add to the other half already held by Vodafone.

But Telkom has to distribute its remaining 35 per cent of shares to holders – a matter on which the deal rests.

It is thought that Vodafone will finance the transaction from its existing debt facilities and cash.