Vodacom Group Ltd, the African subsidiary of Vodafone Group, has reached an agreement to acquire a 20 per cent stake in Safaricom Plc, Kenya’s leading telecommunications operator.

Vodacom will purchase a 15 per cent stake from the Government of Kenya for €1.36 billion (KES 204 billion) and a 5% stake from Vodafone for €0.45 billion (KES 68 billion).

Upon completion, Safaricom’s ownership will be structured as follows: Vodacom 55 per cent, GOK 20 per cent, and public investors 25 per cent.
The company will be consolidated by both Vodacom and Vodafone.

The Acquisition gives Vodafone and Vodacom the chance to secure controlling ownership of one of Africa’s leading telecoms and financial services companies.

Safaricom, listed on the Nairobi Securities Exchange, is Kenya’s largest telecoms operator with a market capitalisation of €7.7 billion.

The company holds a significant tower and spectrum portfolio in Kenya and operates M-Pesa, a globally recognized fintech platform with over 100 million daily transactions and 38 million customers in Kenya.

Vodafone Group CEO,
Margherita Della Valle, said, “In line with our focus on growth, this is an opportunity to gain a controlling shareholding in a highly successful African business in an attractive market. We have enjoyed a successful partnership with Safaricom since 2000, including the co-development of M-Pesa, which has brought wide-ranging financial inclusion to millions of customers.”

The completion of the Acquisition is subject to several conditions, including, but not limited to, obtaining regulatory approvals in Kenya, South Africa, and Ethiopia.