Vodacom gets PIC backing for Safaricom acquisition
Vodacom says it has received a letter of support from the Public Investment Corporation for its proposed transaction in Safaricom.
Vodacom Group announced in mid May that it had agreed terms to acquire a strategic stake in Kenya’s Safaricom held by Vodafone Group, which currently owns 65% of Vodacom.
Vodacom will fund the acquisition of a 34.94% stake in Safaricom by issuing 226.8 million new ordinary shares.
The PIC, which includes the Government Employees Pension Fund, holds a 15.63% interest in Vodacom Group. “In its letter of support, the PIC has undertaken to vote in favour of the resolutions required to implement the proposed transaction at the general
meeting to be convened by Vodacom Group,” the mobile operator said in a statement on SENS.
Vodacom’s interest in Safaricom proportionally equates to approximately 12.6% of the group’s reported service revenue as announced in its latest year end results.
Read: Vodacom to acquire R35 billion stake in Kenya’s Safaricom
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