Vodacom has completed the acquisition of an additional 20 percent stake in Safaricom, days after the Court of Appeal lifted orders that had temporarily blocked the transaction, giving the South African telecommunications giant majority control of Kenya’s largest mobile operator.
In a statement issued on Tuesday, Vodacom confirmed that the transaction had been finalized, increasing its shareholding in the Nairobi Securities Exchange-listed company from 35 percent to 55 percent.
The deal, first announced in December, was completed three days after the Court of Appeal cleared the transaction, allowing the National Treasury to proceed with the sale of its 15 percent stake in Safaricom for Sh204.3 billion.
Under the agreement, the Treasury will also receive a Sh40.2 billion dividend top-up, structured as a loan secured against the government’s remaining 20 percent stake in the telecommunications firm.
Vodacom Group Chief Executive Officer Shameel Joosub described the acquisition as a significant milestone for the company and its operations across the region.
“This is a landmark moment for Vodacom, for Safaricom, and for the communities we serve across East Africa. Acquiring majority ownership in Safaricom strengthens our position as a market leader, while at the same time unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” he said.
The acquisition is expected to strengthen Vodacom’s influence over Safaricom’s strategic direction as the company continues to expand its telecommunications and financial services business in Kenya and Ethiopia.
However, the transaction has continued to face political opposition, with some leaders questioning the sale of the government’s stake in the country’s largest telecommunications company.
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