JOHANNESBURG, South Africa, December 4/APO Group: The leading pan-African telecommunications group Vodacom Group has announced a transaction that would significantly step up its ownership in Safaricom, reinforcing its commitment to the East African markets of Kenya and Ethiopia.
Under the transaction terms, Vodacom has entered into an agreement with the Government of Kenya to acquire 15 percent of Safaricom PLC and an additional 5 percent from Vodafone at KES34 per share, valuing the deal at $2.1 billion (R36 billion). Should the transaction receive requisite approvals from regulatory and governmental authorities in Kenya, Ethiopia, and South Africa, it will witness Vodacom’s stake in Safaricom – which will remain listed on the Nairobi Stock Exchange – increase from 35 percent to 55 percent.
The move constitutes a key milestone in Vodacom’s Vision2030 strategy, which includes deepening its leadership in Africa’s high-growth markets and scaling its diversified portfolio. In accordance with International Financial Reporting Standards (IFRS), Safaricom’s financial results will transition from being accounted for on an associate basis to being fully consolidated, increasing Vodacom Group’s revenue towards R220 billion.
“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa,” commented the CEO of Vodacom Group, Shameel Joosub, “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.”
On the other hand, the Safaricom CEO Peter Ndegwa said: “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.”
Safaricom is widely regarded as one of Africa’s most attractive assets, combining telecommunications, fintech, and technology services. Through the flagship platform M-Pesa in Kenya, it drives high-growth fintech revenue, while expansion opportunities in Ethiopia and a growing suite of cloud, IoT and enterprise services position Safaricom for continued growth.
On behalf of the Government of Kenya, Cabinet Secretary for the National Treasury and Economic Planning, Hon. John Mbadi, told: “This transaction is one of the first steps in the President’s stated agenda of innovatively unlocking capital, without increasing taxes or the country’s 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.”
