Vodafone sells US$2.6b Safaricom stake to South Africa unit

Adjust Comment Print

Vodafone's only other standalone business in sub-Saharan Africa is in Ghana, and there have yet to be discussions between the two companies about that unit, Mr Joosub said.

South Africa's Vodacom said on Monday it will buy a 35 percent stake in Safaricom from its parent company Vodafone for 34.6 billion rand (2.00 billion pounds), expanding its reach into Kenya.

Vodacom, which is majority-owned by Vodafone Group Ltd., plans to acquire 87.5% of the issued share capital of Vodafone Kenya Ltd., which holds a 40% interest in Safaricom and is wholly owned by Vodafone.

"While Safaricom share-- in some segments remain high, we firmly believe this has been attained through prudence investment and continuous innovation, both of which are integral to our strategy", Collymore said on May 10.

"I think by consolidating the African businesses, you could apply scale and target these markets to make a wider opening to Vodacom and Safaricom".

Commenting on the proposed transaction, Shameel Joosub, Chief Executive Officer of Vodacom Group, said: "This is an exciting occasion for Vodacom and a unique opportunity to diversify our revenue growth and profitability".

He added that the deal "promotes the continued successful expansion of the company as well as the opportunity to drive M-Pesa to other markets on the continent".

Caitlyn Jenner verbally abused after LGBT Awards
At the height of its popularity, Caitlin, the name's most common spelling, ranked No. 44 in 1988. It's "expensive" and a lot of them "like their own parts", according to the I Am Cait star.

As part of the transaction, Vodafone Group has given appropriate assurances to the government of Kenya to ensure the ongoing success of the long standing partnership between Safaricom, Vodafone Group and the government.

Safaricom is the market leader in Kenya with 71 per cent of the country's subscribers, and is under pressure from lawmakers and regulators who are debating ways to break its dominant position in the market.

It will also help increase the use of Safaricom's popular M-Pesa money transfer service across Africa. Vodafone stock declined 0.8 per cent in London.

As at the signature date, the subscription price amounts to R34,6-billion, based on the Vodacom Group share price on Friday 12 May 2017. Revenue rose 1.5% to 81.28 billion rand.

Still, Vodacom said its global operations added 2.5 million customers for the year, with worldwide data revenue up 2.3% to 4.11 billion rand, thanks to a 29% increase in customers that use data to 13 million.

The group declared a final dividend of R4.35, taking its total for the year to R8.30, a 4.4% raise on the previous year's R7.95.