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. Vodacom Group CEO Shameel Joosub said that acquiring a strategic stake in Safaricom would provide shareholders with “access to a high growth, high margin, high cash generation business operating in a high growth market”. If you are already a subscriber, please click on the following link below to go to the full ...

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