Chama Cha Mapinduzi (CCM) party stalwart Rostam Aziz has earned USD 240 million (about Tsh. 384,000,000,000/-) from selling part of his stake in Tanzania’s largest mobile phone company, Vodacom Tanzania.
Rostam Aziz has made the fortune by selling 17.2% of his 35% shares in Vodacom Tanzania, the business magazine Forbes has reported. Rostam owns part of Vodacom through the company Cavalry Holdings, a Jersey island-registered private investment company wholly controlled by the Tanzanian politician.
In an article carrying the headline “Tanzania’s Richest Man Concludes Sale Of Vodacom Stake”, Forbes has published the following report:
Vodacom Group Ltd, the African subsidiary of British telecoms giant Vodafone announced on Tuesday that it has finally concluded its acquisition of an additional indirect 17.2% interest in Vodacom Tanzania previously owned by Tanzania’s richest man, Rostam Azizi.
In a press release statement, the company said it had fulfilled all requirements as mandated by the Tanzanian regulatory authorities and that the transaction was now unconditional.
“As all the conditions precedent to the transaction have been fulfilled, the transaction is now unconditional and closing is expected to take place today, 29 April 2014,” the company said.
Last November, Vodacom announced it would spend up to R2.5 billion ($240 million) to acquire a 17.2% stake in Vodacom Tanzania from Cavalry Holdings, a Jersey island-registered private investment company wholly controlled by Rostam Azizi. Cavalry previously held a 35% in Vodacom Tanzania.
With this acquisition, Cavalry’s holding the company is now reduced to 17.8%, while Vodacom Group, a Johannesburg Stock Exchange-listed entity that previously owned a 65% stake in the company will now own 82.2%. Vodacom Tanzania, which has more than 10 million active subscribers, is the country’s largest mobile phone company, and Vodacom Group’s second most successful operation in Africa, after its South African unit that boasts more than 23 million subscribers.
Azizi, 49, is Tanzania’s first billionaire with a fortune estimated at $1 billion, derived from stakes in contract mining firm Caspian Mining, a Port in Dar es Salaam, extensive real estate in Tanzania and the Middle East and, of course, cash coming from the sale of his stake in Vodacom Tanzania.