(NAIROBI, KENYA) – Vodacom has completed its acquisition of an additional 15 percent stake in Safaricom. The move comes days after the Court of Appeal lifted orders that had blocked the State’s KES 204.3 billion sale. The stake value is equal to about $1.26 billion or £992 million.
The South African telecommunications group said on Tuesday that the transaction has closed. This increases its stake in the Nairobi Securities Exchange listed operator to 55 percent and gives it majority control.
The deal was first announced in December. It was completed three days after the Court of Appeal cleared the transaction. The ruling paved the way for the National Treasury to receive KES 204.3 billion from the sale of its 15 percent stake.
Under the transaction, the Treasury will also receive a KES 40.2 billion dividend top-up. This is equal to about $248 million or £195 million. The top-up is structured as a loan backed by Kenya’s remaining 20 percent stake in Safaricom.
Vodacom Group chief executive Shameel Joosub said the deal is a landmark moment for Vodacom, for Safaricom and for the communities served across East Africa. He said acquiring majority ownership in Safaricom strengthens the company’s position as a market leader. It also unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.