The government has sold its 13.91% stake in Vodacom to the Public Investment Corporation to help fund the R23bn allocation to Eskom, National Treasury said in a statement on Wednesday.

The National Treasury and the Department of Telecommunications and Postal Services worked together in executing the transaction.

“As previously indicated, the proceeds from the sale will be used to finance the R23bn allocation to Eskom. This gives expression to the commitment made in the 2015 Budget and the 2014 Medium Term Budget Policy Statement that funding of state owned companies would be in a deficit neutral manner,” Treasury said.

Last week, Eskom came one step closer to receiving R23bn and converting its R60bn subordinated loan into equity, after the National Council of Provinces passed the two bills tabled by Finance Minister Nhlanhla Nene.

Last week Parliament passed the Eskom Special Appropriation Bill to enable the appropriation and the Eskom Subordinated Loan Special Appropriation Amendment Bill for the conversion of the subordinated loan into equity.

“In arriving at a decision to dispose of its stake in Vodacom to the PIC, government undertook a market sounding exercise where numerous organisations presented proposals for raising the funding to be allocated to Eskom.” News24