Vodacom has successfully acquired a 35% stake in Kenya’s Safaricom from its parent firm Vodafone Group for ZAR35 billion ($2.6 billion).
The transfer was executed by the group’s subsidiary Vodafone International Holdings, which retains a 5% indirect stake in Safaricom. After it obtained the requisite regulatory approvals in both Kenya and South Africa, Vodacom’s shareholders gave the deal the green light.
In addition, Vodacom has issued 223 million new ordinary shares to Vodafone, increasing the parent firm’s stake in its subsidiary from 65% to almost 70%. Vodacom’s CFO Till Streichert said that the deal would allow the operator’s shareholders to “access a strong performing business in East Africa in a high growth market”, noting that the deal was the largest in the firm’s history.
“We expect this transformational transaction will enhance our position as a leading African mobile communications company, providing the group with the perfect opportunity to diversify our financial profile,” added Streichert.