The deal will help Vodacom, which is expected to be majority owned by Britain's Vodafone Group Plc (VOD.L) during 2009, will reposition itself as a provider of converged communication services rather than as a pure mobile phone operator. Vodafone, which has 50 percent of Vodacom, is finalizing the purchase of a further 15 percent stake from Telkom (TKGJ.J) for 22.5 billion rand ($2.37 billion). The Gateway transaction includes Gateway's core carrier and business network units, which provide satellite, business and interconnect services to African and multinational companies in 40 countries, but not its broadcasting division.
Gateway is Africa's largest independent provider of interconnection services via satellite and terrestrial network infrastructure with sales of $257 million for the year ending in December of 2008. Vodacom Group will be listed on the Johannesburg Stock Exchange in 2009, once the Vodafone deal to buy an additional stake is completed. The Vodacom identity will remain visible on the African continent and it will be the exclusive investment vehicle through which Vodafone will make acquisitions in sub-Saharan Africa, excluding Ghana and Kenya where Vodafone is already present.
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