Vodacom Group has entered into an agreement to increase its ownership in Safaricom by buying an additional 15% of the East African operator from the Kenyan government in a transaction valued at R36-billion ($2,1-billion).
Should the transaction receive requisite approvals from regulatory and governmental authorities in Kenya, Ethiopia, and South Africa, Vodacom’s stake in Safaricom – which will remain listed on the Nairobi Stock Exchange – will increase from 35% to 55%.
“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepens our impact across Africa,” says Shameel Joosub, CEO of Vodacom Group.
“Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.
“Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future.
“I look forward to working even closer with the Safaricom team and taking some of the learnings from their success and leveraging it across the Group,” he adds.
Peter Ndegwa, CEO of Safaricom CEO, comments: “Vodacom has been a trusted partner in Safaricom’s journey from the very beginning, and we welcome their continued commitment and long-term investment in our business.
“Their confidence in Safaricom is a testament to the strength of our people, our strategy, and the opportunities ahead. We look forward to deepening our collaboration as we continue to scale innovation, expand regionally, and deliver transformative digital and financial services to our customers.”
John Mbadi, cabinet secretary for Kenya’s National Treasury and Economic Planning, says: “This transaction is one of the first steps in the president’s stated agenda of innovatively unlocking capital, without increasing taxes or the countries debt burden, to allow additional investment in critical infrastructure to support future growth.
“Safaricom has been, and continues to be, a key strategic investment for us, as we are retaining a 20% stake as well as board representation.”