Group History and Recent Developments

Vodacom Group and Vodacom SA were incorporated in South Africa in 1993 as a joint venture between Telkom, Vodafone and VenFin Limited ("VenFin"). The Group launched one of Africa's first GSM networks in South Africa in 1994. Vodacom Group's shareholders recognised the need for BEE investors and in 1996 a 5% stake in Vodacom Group was sold to a BEE company, Hosken Consolidated Investments Limited ("HCI") (through Descarte Investments No 8 (Proprietary) Limited) for R118 million. Six years later in 2002, HCI sold its stake back to Vodafone and VenFin for R1.5 billion, making it one of the most successful BEE deals implemented in South Africa to date.

Until the implementation of the Vodacom BEE transaction, Vodacom Group held 100% of Vodacom SA. The Vodacom BEE transaction was finalised on 8 October 2008 when Royal Bafokeng Holdings (Proprietary) Limited ("Royal Bafokeng") and Thebe Investment Corporation (Proprietary) Limited ("Thebe"), through their subsidiaries, the black public (as defined in the BBBEE Codes), business partners and employees acquired in aggregate 6.25% of Vodacom SA. The black public, business partners and employees obtained ownership in Vodacom SA through YeboYethu. YeboYethu owns 3.44% of Vodacom SA while Royal Bafokeng and Thebe own 1.97% and 0.84% of Vodacom SA, respectively through their subsidiaries.

Prior to 20 April 2006, the entire issued share capital of Vodacom Group was held as follows: 15% by VenFin, 35% by VHSA and 50% by Telkom. On 20 April 2006, Vodafone Group acquired the entire issued share capital of VenFin, resulting in a change in the shareholding of Vodacom Group, with the issued Vodacom Group shares being held as follows, 50% (in aggregate) by VHSA and VTI, indirect wholly owned subsidiaries of Vodafone, and 50% by Telkom.

Vodacom’s history shows a track record of innovation – in the early adoption of new technologies and in being first to market to offer new services to our customers.