The proposed acquisition by Vodacom Group (JSE: VOD) of an effective 35% stake in Safaricom (NSE: SCOM), Kenya’s leading integrated communications company, has cleared an important hurdle after Vodacom minority shareholders overwhelmingly voted in support of the transaction.
In May this year, Vodacom said the transaction would further enhance its position as a leading African mobile communications company and acquiring Safaricom provides Vodacom with a unique opportunity to diversify its financial profile in a single transaction.
Commenting on the latest developments, Vodacom Group Chief Executive Shameel Joosub said:
“The vote of confidence from Vodacom’s minority shareholders is an important milestone in our journey to become a leading digital company and empowering a connected society. This is an exciting deal that provides Vodacom shareholders with access to a high growth, high margin and high cash generating business in the attractive Kenyan market. The proposed transaction increases our presence in East Africa and makes Vodacom a formidable player in financial services on the continent.
The transaction remains subject to certain Regulatory approvals and conditions precedent in both Kenya and South Africa.
