US EditionDebt-strained Kenya to sell Safaricom stake to Vodacom in $1.6 billion deal
Vodacom will hold a 55% controlling stake in Safaricom after acquiring 20% from Kenya's government and Vodafone, with Safaricom revenue up 9.3% year-over-year, driven by 14% M-Pesa growth.
- On Thursday, Vodacom Group Limited agreed to acquire a 55% stake in Safaricom PLC, with 15% from the Government of Kenya and 5% from Vodafone Group Plc.
- Kenya, with the government first signaling in May 2025, is selling more Safaricom PLC shares to fill its coffers amid fiscal pressure, supported by Safaricom’s 9.3% service and 14% M-Pesa revenue growth.
- The buyer will pay 34 shillings per share, a premium over the previous close, with Vodacom paying 1.36 billion euros for 15% and 0.45 billion euros for 5%, expected to close in early 2026.
- The transaction will be consolidated by both Vodacom Group Limited and Vodafone Group Plc, completion is subject to regulatory approvals in Kenya, South Africa and Ethiopia, and Safaricom PLC said Vodafone Kenya does not intend to launch a takeover offer.
- The acquisition positions Vodacom as a continental leader, providing Vodafone and Vodacom an opportunity to control one of Africa's leading telecoms and financial-services firms, with M-Pesa processing over 100 million daily transactions from 38 million customers.
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51 Articles
South Africa’s Vodacom buys Safaricom stake in $2.4B deal
Vodacom, South Africa’s largest mobile operator, is taking control of its biggest East African rival in a deal worth around $2 billion. The Kenyan government, grappling with high public debt, is selling a 15% stake in Safaricom as part of its drive to raise funds by offloading some state assets. Vodacom’s purchase will lift its stake to 55%, effectively giving it control of Kenya’s biggest company by market capitalization which is best known for…
Under budgetary pressure the Kenyan government could give up its majority control in the active telecom operator in Kenya and Ethiopia. A choice that worries analysts who regret the state's abandonment of part of its regular income from dividends.
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South Africa telecoms giant Vodacom to take control of Kenya's Safaricom
South Africa's biggest mobile operator Vodacom said Thursday it had agreed to take control of East Africa's largest telecoms firm, Safaricom, in a deal worth $2.1 billion.
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