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.