Vodacom seeking shareholders approval to acquire Aziz’s Mirambo shares

31Oct 2018
Francis Kajubi
The Guardian
Vodacom seeking shareholders approval to acquire Aziz’s Mirambo shares

SOUTH African based Vodacom Group Limited has been directed by Capital Markets and Securities Authority to summon a shareholders extraordinary general meeting to discuss the issue of acquiring over 26 percent shares belonging to Mirambo Holdings Limited of Rostam Aziz.

Mirambo’s Rostam Aziz

 In an announcement placed in the media this week, Vodacom Tanzania Plc in which Aziz holds the 26 percent shares said VGL which has a majority 48.8 percent stake, is convening an extra-ordinary shareholders meeting to deliberate on the subject.

“Shareholders are advised that Vodacom Group Limited has now advised the company that it intends to increase its direct shareholding in Vodacom Tanzania Plc through the acquisition of additional Vodacom Tanzania Plc ordinary shares,” Vodacom Tanzania Company Secretary, Caroline Mduma said in the statement.

Mduma added that finalization of the transaction is subject to various regulatory approvals, a precondition of which is the approval by shareholders through a convened extra-ordinary meeting.

The announcement further stated that shareholders are notified to attend the extraordinary general meeting to transact the special business on the proposed increase of Vodacom Group Limited stake in Vodacom Tanzania Plc.

It stated that because CMSA considers the transaction as substantial, regulations pertaining acquisition, takeovers and mergers, require that such needs approval from the shareholders’ extraordinary general meeting.

According capital market regulations, the transaction should be subject of a public offer to all Vodacom Tanzania Plc shareholders to.

“The proposed transaction illustrates Vodacom Group Limited’s commitment to the Tanzania market and will allow VGL to consolidate its shareholding structure in the company and increase its shareholding in line with its stated objectives as set out in the initial public offer prospectus bringing about important benefits for Vodacom Tanzania Plc’s present and future shareholders and its employees and customers,” the statement noted.

Earlier this year, Fair Competition Commission (FCC) published a notice showing that it had received a merger notification from the South Africa-based group seeking to acquire Mirambo Holdings 26.25 percent shares.

“In line with the provisions of the Fair Competition Act, No. 8 of 2003 and the Fair Competition Commission Procedure Rules, 2013, whose outcomes have yet to be published, the FCC conducted an investigation on the intended acquisition. The transaction will see the group’s stake in Vodacom Tanzania rise,” the FCC statement noted. In May 2014, the Group indirectly acquired a 17.2 per cent interest previously held by Aziz, a former ruling party legislator for Igunga.