South African franchise of British’s telecoms giant Vodafone, Vodacom to buy about 35% stake in Kenya’s Safaricom.
VODAFONE seeks to transfer 35pc stake in Safaricom to its subsidiary Vodacom; it will retain a 5pc stake after approval. @CapitalFMKenya
— Breaking News KE! (@BreakingNewsKE) 15 May 2017
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.
Edit: Vodacom Group Ltd. will buy 35 percent shareholding in Safaricom Ltd.from its parent company Vodafone Group Plc and not Kenya govt
— Money Academy (@moneyacademyKE) 15 May 2017
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.
— TechCentral (@TechCentral) 15 May 2017