Kenya’s Safaricom (SCOM.NR) announced on Wednesday that Vodafone Kenya plans to acquire an additional 15% stake in the company from the government for approximately $1.6 billion.
Safaricom stated that Vodafone Kenya does not intend to launch a takeover offer for the company following the completion of the transaction.
The deal would leave the government with a 20% stake, the public holding 25%, and Vodafone Kenya controlling 55% of the company, as seen on Reuters
Don’t Miss This:
Kenya’s Safaricom Posts 55% Profit Surge As Ethiopia Losses Decline Sharply
As part of the agreement, Vodafone Kenya would also acquire the right to receive future Safaricom dividends through an upfront payment of 40.2 billion shillings to the government, covering dividends that would otherwise accrue to the government’s remaining 20% shareholding.
The purchase price is set at 34 shillings per share, a premium over the closing price of 28.20 shillings on Wednesday.
Finance Minister John Mbadi first announced Kenya’s intention to sell additional shares in Safaricom in May 2025.
The government previously sold a 25% stake through an initial public offering in 2008.
Don’t Miss This:
Kenya Partners With China On $1.5 Billion Highway Expansion
Image Credit: Reuters
