Vodacom to buy parent’s R35bn stake in Safaricom
The deal involves 35% of Kenya’s largest mobile network operator, with Vodafone retaining a 5% stake in company
In what is the largest transaction Vodacom has done to date, the mobile telecoms group will buy most of its parent Vodafone’s interest in Kenya’s Safaricom in a share-swap deal valued at R35bn. The deal, which involves Vodacom acquiring 35% in Kenya’s largest mobile network operator, is seen as a vote of confidence in Vodacom’s management and is part of Vodafone’s strategy to consolidate some of its African businesses under the umbrella of its subsidiary. Vodafone is also likely to sell its majority holding in Vodafone Ghana to Vodacom in future, while retaining ownership of the North African assets. This move would give Vodafone a single entry point into sub-Saharan Africa. The deal also diversifies Vodacom’s earnings and reduces its reliance on the South African market, which has a 146% mobile penetration rate. Vodafone CEO Vittorio Colao said in April the group was looking at "improving the cohesion of different operations". Vodafone will retain a 5% stake in Safaricom but may se...
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