en.Wedoany.com Reported - Vodacom Group has completed the acquisition of an additional 20% stake in Kenyan telecom operator Safaricom, with a transaction value of $2.1 billion, which closed last week. This acquisition raises Vodacom's shareholding in Safaricom to 55%, thereby securing a controlling interest.
The deal, first announced in December last year, is part of Vodacom's strategy to consolidate its position in the East African market. Under the terms of the transaction, Vodacom purchased 15% of the shares from the Kenyan government and an additional 5% from Vodafone Group, at a price of 34 Kenyan shillings (approximately $0.26) per share. Following the completion of the deal, the Kenyan government retains a 20% stake in Safaricom.
Vodacom stated that this transaction is part of its "Vision2030" strategy, aimed at enhancing the operator's leadership in certain high-growth markets in Africa. Shameel Joosub, CEO of Vodacom Group, said that obtaining a majority stake in Safaricom solidifies its market leadership position while unlocking new opportunities to drive digital and financial inclusion in Kenya and Ethiopia.
Safaricom was founded in 1997, initially as a wholly owned subsidiary of Telkom Kenya. In 2000, Telkom Kenya sold 40% of the company's shares to British telecom company Vodafone. In 2017, Vodafone transferred its 35% stake to South Africa's Vodacom. Currently, Safaricom has over 50 million mobile subscribers in Kenya.
The Kenyan government announced plans to sell shares in the telecom company last May. At that time, ministers aimed to raise 149 billion Kenyan shillings (approximately $1.16 billion) in the 2025/26 fiscal year through the sale of stakes in companies including Safaricom.
Safaricom also has a subsidiary in Ethiopia, established over three years ago when the Ethiopian government was pushing for the privatization of its telecom network. Currently, the operator has over 10 million customers in Ethiopia.
Vodacom said it will provide a market update on its medium-term targets when it releases its first-quarter financial results later this month.
