LONDON (dpa-AFX) - Telecom major Vodafone Group Plc (VOD.L, VOD) announced Thursday its agreement to acquire controlling stake in Kenyan telecoms operator Safaricom Plc.
In the deal, Vodafone's African subsidiary, Vodacom Group Ltd, will acquire 20 percent of Safaricom, taking its total stake to 55 percent.
Vodacom will acquire 15 percent from the Government of Kenya for a cash consideration of 1.36 billion euros, and 5 percent from Vodafone for a cash consideration of 0.45 billion euros.
The acquisition is expected to close in the first quarter of the 2026 calendar year, subject to a number of conditions, including, but not limited to, regulatory approvals in Kenya, South Africa and Ethiopia.
Following the deal completion, Safaricom will be owned by Vodacom with 55 percent, while the Government of Kenya will own 20 percent stake and public investors will own 25 percent stake. The firm will be consolidated by both Vodacom and Vodafone.
Safaricom, with a market capitalisation of 7.7 billion euros, owns a scaled tower and spectrum portfolio in Kenya, as well as fintech business M-Pesa with over 100 million daily transactions and 38 million M-Pesa customers in Kenya.
In the six months to September 30, Safaricom's service revenue in Kenya was up 9.3 percent over last year, mainly with strong M-Pesa revenue growth of 14 percent.
Margherita Della Valle, Vodafone Group CEO, said, 'In line with our focus on growth, this is an opportunity to gain a controlling shareholding in a highly successful African business in an attractive market. We have enjoyed a successful partnership with Safaricom since 2000, including the co-development of M-Pesa, which has brought wide-ranging financial inclusion to millions of customers.'
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