Vodacom Group Ltd on Thursday said it has agreed to acquire an additional 20% stake in Safaricom PLC for $2.1 billion, or R 36.0 billion.
The Midrand-based telecommunications firm will buy a 15% shareholding in Safaricom from the government of Kenya and a 5% interest from Vodafone International Holdings BV, raising its ownership to 55%. Vodafone International Holdings is a 100% subsidiary of UK-based Vodafone Group PLC.
Following the transaction, which will be funded through new term loan facilities, the Kenyan government will own 20% in Nairobi-based Safaricom, while public investors via the Nairobi Securities Exchange will hold the remaining 25% in the listed company.
Vodacom said the acquisition is conditional on conditions including confirmation by the Capital Market Authority of Kenya that Vodacom is exempted from making an offer to minority shareholders.
In a statement, Vodacom also said it has also agreed to buy the right to receive future Safaricom dividends, amounting to KES55.7 billion or R 7.4 billion, that would have accrued to the Kenyan government on its remaining shares in Safaricom. This will be for an upfront payment of R 5.3 billion.
Funding for buying the dividend rights will to take the form of an externally sourced Kenyan shilling facility, the company said.
Vodacom said the acquisition will consolidate its capabilities in mobile payments, lending, and digital wallets. It also will deepen the integration of Safaricom into the Vodacom group.
Copyright 2025 Alliance News Ltd. All Rights Reserved.
