Vodacom shareholders give the go-ahead for R35 billion Safaricom acquisition

Vodacom’s proposal to acquire a 35% stake in Kenya’s Safaricom has been given the all-clear by the group’s minority shareholders.

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 said it will fund the acquisition of a 34.94% stake in Safaricom by issuing 226.8 million new ordinary shares.

In June, the group received approval from the Public Investment Corp. (PIC) – which holds a 15.63% interest in Vodacom – for the acquisition.

The group said that the deal will provide Vodacom shareholders with access to a high growth, high margin and high cash generating business in the Kenyan market, and that the transaction will increase its presence in East Africa and make Vodacom a “formidable player in financial services on the continent”.

The transaction remains subject to certain regulatory approvals and conditions precedent in both Kenya and South Africa, Vodacom said.


Read: Vodacom gets PIC backing for Safaricom acquisition

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Vodacom shareholders give the go-ahead for R35 billion Safaricom acquisition