Vodafone Group sold off a 5.2 per cent stake in Vodacom for ZAR14.8 billion ($1.1 billion), bringing its ownership down to 64.5 per cent.

The move comes after Vodacom acquired a 35 per cent stake in Kenyan operator Safaricom from the parent company.

As part of the Safaricom transaction, Vodafone committed to: “sell down a sufficient number of shares to ensure that Vodacom will meet the 20 per cent minimum free float requirement on the Johannesburg Stock Exchange,” the companies explained in a joint statement.

The objective of the sale was also to restore Vodafone’s shareholding in Vodacom to a percentage “broadly similar to that which it held prior to implementation of the Safaricom transaction,” the statement said.

Vodafone agreed not to sell, distribute or dispose of any more ordinary shares in Vodacom which are not sold for a period of 90 days after completion of the sale.

Settlement and delivery of the shares is expected to occur on the Johannesburg Stock Exchange on 11 September.

“Vodafone remains committed to Vodacom and intends to retain a controlling majority shareholding in Vodacom for the long-term,” it said.