Vodafone Sells $2.6 Billion Kenyan Stake to South Africa Unit
19 May 2017
Vodafone Group Plc is simplifying its holdings in sub-Saharan Africa, selling a $2.6 billion stake in Kenya’s Safaricom Ltd. to its majority-owned Vodacom Group Ltd.
In the all-share deal, Vodafone will transfer a 35 percent stake in Safaricom to its Johannesburg-based unit, getting stock in return that raises its Vodacom holding to about 70 percent. Bloomberg News reported the deal on Sunday.
The transaction gives Vodacom greater access to M-Pesa, Safaricom’s fast-growing mobile-banking service, and furthers Newbury, England-based Vodafone’s effort to tidy up its developing-market investments. Vodacom also adds to its holdings outside of South Africa, which include Tanzania and Mozambique.
“It’s a big step in terms of commitment of Vodafone to Vodacom,” the South African company’s chief executive officer, Shameel Joosub, said on a call with reporters. “Selling the asset to us does show, at least in east and southern Africa, that the assets are all under Vodacom.” Read the full article in Bloomberg here.