Vodafone has taken a major step in its attempt to take control of the South African mobile network company Vodacom which it co-owns with the South African telecommunications group, Telkom. Vodafone which up to now had a 50% share in the group has offered Telkom $2.2bn (ZAR 22.5bn) for an additional 15%.

The remaining 35% owned by Telkom is expected to be demerged from the company and distributed amongst Telkom shareholders. Once completed Vodacom will be listed as a separate entity on the Johannesburg Stock Exchange (JSE)

The deal requires approval by 75% of Telkom shareholders, however the South African government and the Public Investment Corporation Limited, owning a combined 58% have already given their support for the deal.

The deal will see Vodafone take control of the largest mobile network operator in South Africa with a market share of 55%. Additionally Vodacom has strong presence in Tanzania, Democratic Republic of Congo and Mozambique.

The deal will also provide Vodafone will the platform it needs to expand across Africa which offers some of the highest rates of mobile network growth in the world.