The Public Investment Corporation (PIC) on behalf of the Government Employees Pension Fund (GEPF), has increased its exposure in the mobile telecommunications operator Vodacom by purchasing the Government of South Africa’s 13.91% equity stake.

PIC, which already owns 3.19% of Johannesburg-based Vodacom, has increased its stake to 17.1%.

Daniel Matjila, PIC CEO, said: “We are proud to have acquired these shares on behalf of the GEPF and believe that more benefit will be derived from this investment. Vodacom is a well-managed blue-chip South African company with credible exposure in the rest of Africa and strongly underpinned by its corporate governance practices.”

The stake was acquired through the PIC’s participation in the engagement process that National Treasury ran with various financial institutions and managed to agree on the sale with PIC.

The sale price was R120.50, or 10% below Vodacom's 30-day volume-weighted average price of R133.89.

PIC said the investment in Vodacom is important, given that Vodacom is one of the key players in the South African information and communications technology (ICT) industry.

The investment is in line with the PIC’s investment mandate and objectives, and will further assist the PIC with portfolio diversification as well as risk mitigation.

Matjila said that telecommunications is one of the key drivers for both economic and social development.

“In fact the National Development Plan (NDP) acknowledges that maintenance and expansion of telecommunications infrastructure should be prioritised to support economic growth and social development goals,” he said.

He added that the ICT sector contributes approximately 6% to South Africa’s GDP and presents the PIC with an opportunity to contribute to the universal access to ICT services in Africa.

“The PIC has been a long-term investor in Vodacom and looks forward to a continued fruitful relationship with the company,” said Matjila.