Safaricom (NSE: SCOM) notes today’s announcement by Vodafone Group Plc (“Vodafone Group”) regarding the proposed transfer by its wholly-owned subsidiary, Vodafone International Holdings B.V. (“Vodafone”), of part of its indirect interest in Safaricom to Vodacom Group Limited (“Vodacom”), its sub-Saharan African subsidiary. Under the terms of the agreement, Vodafone will exchange a 35% indirect interest in Safaricom for new ordinary Vodacom shares and will continue to hold a 5% indirect interest in Safaricom, in addition to the interest held through Vodacom.
As part of the transaction, Vodafone Group has given appropriate assurances to the Government of Kenya to ensure the ongoing success of the long standing partnership between Safaricom, Vodafone Group and the Government of Kenya.
The CEO of Safaricom, Bob Collymore, said:
“The agreement Vodafone Group has reached with the Government of Kenya will ensure Safaricom continues to have strong Kenyan representation at Board and management levels, and promotes the continued successful expansion of the company as well as the opportunity to drive M-PESA to other markets in the continent.”
Conditions to completion and indicative timetable
Completion of the transaction is subject to a number of conditions, including approvals from Vodacom minority shareholders, approval from the Financial Surveillance Department of the South African Reserve Bank and confirmation from the Kenya Capital Markets Authority that the Transaction does not trigger an obligation for Vodacom to make a mandatory bid for Safaricom.