Please Call Me case settled

SECRET: MAKATE DISPUTE AGREEMENT ESTIMATED AT R512M, FOLLOWING ONE-OFF PAYMENT

- Hilton Tarrant

Vodacom has reported a 32.3% increase in half-year headline earnings per share (Heps) of 467 cents, which is towards the lower end of its updated guidance following the one-off payment to Kenneth Makate to settle the Please Call Me matter.

Both parties have signed nondisclosure agreements.

However, it is possible to estimate the quantum - or at least the range thereof - given that the operator had to revise its trading update for the six months to 30 September.

Using the midpoints of each range (first, 40% to 45% and then the revised 30% to 40%), Nedbank Corporate and Investment Bank estimated the out-of-court settlement at R512 million, in a note to clients.

The range of the settlement was seen as “between R350 million and R660 million”. The bank said: “While this is meaningfully higher than the initially indicated R47 million settlement by Vodacom, we believe the market will rather be encouraged by the finality of the matter.”