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Vodacom to buy major stake in Kenya’s Safaricom

South African franchise of British’s telecoms giant Vodafone, Vodacom to buy about 35% stake in Kenya’s Safaricom.

Under the deal, valued at 34.6 billion rand ($2.59 billion), Vodacom said it will acquire a 87.5 percent shareholding in Vodafone Kenya, representing a 35 percent indirect interest in Safaricom, in return for issuing 226.8 million new shares to Vodafone, raising the British company’s stake from 65 percent currently to 69.6 percent.

Vodacom said buying into Safaricom gives it access to a market where Safaricom has a 71 percent share and demand is still growing for mobile phone services, including Safaricom’s M-Pesa payments platform.

Shares in Vodacom were up 0.2 percent at 153 rand at 1043 GMT, when Vodafone’s shares were down 0.3 percent at 210 pence.

 

– Reuters

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