SA's Maziv valued at $2bn after revised deal with Vodacom

File photo: A branch South African mobile communications provider Vodacom in Cape Town is shown in this picture taken on 10 November 2015. Reuters/Mike Hutchings/File Photo

The telecoms operator, majority-owned by Vodafone, is moving closer to finalising the long-delayed deal following a breakthrough with the Competition Commission last week to clear the way for an unopposed hearing at the Competition Appeal Court on Tuesday.

After agreeing on revised terms with the Commission and Community Investment Ventures Holdings (CIVH), Maziv's parent company, Vodacom will now contribute fibre network infrastructure worth R4.9bn in return for new shares in Maziv and pay R6.1bn in cash for new shares, it said in a statement.

Previously, Vodacom offered R6bn in cash and in fibre assets valued at R4.2bn at the time.

Vodacom will also acquire additional shares from CIVH for an estimated R2.5bn to reach the 30% stake.

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Maziv, which owns network operators Vumatel and Dark Fibre Africa, may declare a dividend of up to R4.2bn before the deal closes. If declared, Vodacom's cash consideration would be reduced by up to R1.3bn, the company said.

The revised terms of the deal reflect a pre-acquisition transaction equity valuation of R29.8bn if the dividend is declared, and R34bn if it is not, Vodacom said.

The transaction also includes Maziv's 49.96% stake in Herotel, a wireless internet provider. Vodacom will pay an additional R600m for its share of that stake, raising the total equity value to R31.8bn, or R36bn if no dividend is declared.

Vodacom's option to increase its stake in Maziv has been revised down to 4.95% from 10% previously, potentially raising its total stake to 34.95%.