Finance

South Africa’s Vodacom finalizes transaction of Kenya’s Safaricom

Vodacom Group, part of Vodafone, announced that its proposed R35 billion (around US$2.6 billion) acquisition of an effective 35% stake in Kenya’s leading integrated communications company, Safaricom, has been finalized. All regulatory approvals and conditions precedent in both Kenya and South Africa have now been met.

At a General Meeting held on 18 July 2017, shareholders overwhelmingly approved the proposed acquisition by Vodacom of an indirect interest of 34.94% in Safaricom Limited and the issue of 233 459 781 new ordinary shares in the company to Vodafone. The allotment and issue of 233 459 781 new ordinary shares to Vodafone took effect on August 7, as well as the listing of these shares on the Johannesburg Stock Exchange (JSE).

“Vodacom is pleased to announce that the Safaricom transaction, which is the largest in our company’s history, has now been finalized,” said Vodacom Group Chief Financial Officer Till Streichert, commenting on the conclusion of the transaction.

“This will provide both businesses with opportunities for growth, as well as enable Vodacom shareholders to access a strong performing business in East Africa in a high growth market. We expect this transformational transaction will enhance our position as a leading African mobile communications company, providing the Group with the perfect opportunity to diversify our financial profile.”