Vodacom’s court battle to buy African giant for R34 billion fast-tracked
Vodacom’s R34.5 billion deal to acquire Safaricom will be fast-tracked by Kenya’s Court of Appeal after the country’s High Court voided the acquisition.
In an announcement on the Stock Exchange News Service (SENS), Vodacom said the Appeals Court had opted not to determine the application, but rather fast-track the appeal.
“The Court decided not to determine the application but instead recorded to fast-track the substantive appeal,” the company said.
In the interim, Vodacom will retain control of the shares it had purchased from the Kenyan government in Safaricom.
“The prevailing status quo in respect of the shares and purchase consideration shall be maintained pending the hearing of the appeal,” Vodacom said.
The company previously announced it would acquire a 20% stake in Safaricom, with 15% coming from the Kenyan government.
This acquisition was completed in June 2026, valued at roughly R34.5 billion at the time, but Kenya’s High Court later placed a conservatory order on the deal, preventing it from advancing.
The Court raised questions about the Safaricom deal, particularly regarding takeover exemptions and the deal’s approval by Kenya’s takeover authority.
Concerns over the constitutionality of the deal ultimately led the High Court to issue a conservatory order, preventing the sale from proceeding.
“A conservatory order is hereby issued restraining all the respondents from proceeding with the intended sale,” the court said at the time.
According to the court, the deal violated Kenya’s constitution, and critical documents were not disclosed for public scrutiny.
After this ruling, Vodacom told MyBroadband that it had noted the court’s decision, but stood behind the original rationale for the acquisition.
“Our long-term strategic partnership with Safaricom remains firmly intact,” a spokesperson for the company said.
“East Africa remains an important growth region, and Safaricom continues to play a key role in our broader ambition to help build Africa’s leading digital and financial services ecosystem.”
Following this, Vodacom appealed the decision to reverse the transaction and applied for a stay order with the Kenyan Court of Appeal.
“On 13 October 2026, the application for a stay order in relation to Vodacom’s transaction to acquire a controlling stake in Safaricom came before the Court of Appeal,” the company said.
Ultimately, the court opted to fast-track the appeal and left Vodacom in control of the shares it had previously purchased from the Kenyan government.
Following this decision, Vodacom said it continued to stand behind its original rationale for the acquisition.
“Vodacom remains confident in the strategic rationale for the Acquisition and will continue to update shareholders on any material developments relating to the appeal process,” the group said.
(Reported with Bloomberg)
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