The planned sale by the country’s Public Investment Corporation (PIC) of a stake of approximately 15 per cent in South Africa’s Vodacom to black investors has fallen through, said Bloomberg, citing sources.

No reason was given for the PIC’s change of heart, which could have serious ramifications for Vodacom.

The PIC, which invests government workers’ pensions, was aiming to sell its stake to a consortium led by Romeo Kumalo, a former Vodacom executive, a move which would have boosted Vodacom’s black shareholding.

An increase in black shareholding would also enable Vodacom to participate in a spectrum auction that the Independent Communications Association of South Africa (ICASA), the country’s regulator, is planning early next year. Companies need 30 per cent black ownership to place a bid.

However, ICASA faces potential legal action from the country’s government, which might mean the sale does not go ahead as planned.

The ownership rule is part of South Africa’s push to improve black ownership of industries, addressing an issue that is a hangover from the apartheid era.

Vodacom is currently 19 per cent owned by black investors, compared with 39 per cent for MTN Group Ltd. Both companies are based in Johannesburg.