Vodacom strikes $2.6B deal for Safaricom stake
Tuesday, May 16, 2017
Vodacom is to take a 34.94 per cent stake in Kenyan operator Safaricom from parent company Vodafone Group for ZAR35 billion ($2.6 billion), in a move designed to bolster the South African operator’s presence in East Africa.
The deal sees Vodafone simplify its holdings in the continent by divesting the sizeable stake in Safaricom, described in a Vodacom statement as “a prized asset on the African continent”.
Vodafone, which owns 65 per cent of Vodacom, will be left with a 5 per cent stake in Safaricom should the all share transaction be approved by regulators. The Kenyan government holds the remaining 35 per cent.