Vodacom Group, South Africa’s largest cell operator, has acquired an unbiased equity opinion from audit agency Deloitte confirming that its deliberate buy of an additional 20% stake in Kenya’s Safaricom for $2.1 billion is honest to shareholders. The sign-off clears a key regulatory step in its residence nation.
The equity opinion, dated December 5, is essential as a result of the deal is classed as a small related-party transaction below the Johannesburg Inventory Alternate (JSE) listings necessities. This classification requires Vodacom to indicate that the KES 34 ($0.26) per share worth is affordable for minority shareholders who don’t have any direct affect over the phrases.
Deloitte’s affirmation supplies unbiased assurance that the worth sits inside acceptable valuation ranges for Safaricom. The opinion, permitted by the JSE, is now open for inspection at Vodacom’s workplaces for 28 days from December 5, letting shareholders evaluation the authorized foundation of the deal earlier than it strikes forward.
The evaluation covers Vodacom Group’s acquisition of Vodafone Kenya, the Vodafone-controlled holding car that owns Safaricom shares on behalf of the broader group. Whereas Vodafone stays the dad or mum firm, Vodacom is the sub-Saharan operator by way of which a lot of the group’s African enterprise is run.
The restructuring shifts extra Safaricom possession to the South African unit, tightening the group’s maintain on the Nairobi-based firm whereas giving Vodafone Kenya a direct position in a parallel transaction with the Kenyan authorities.
The acquisition is a part of a broader sequence of transactions altering management of East Africa’s most worthwhile firm. On the Kenyan facet, Vodafone Kenya is shopping for a 15% stake from the Kenyan authorities for KES 204.3 billion ($1.58 billion) from the share sale itself, rising to KES 244.5 billion ($1.89 billion) as soon as an added upfront dividend fee is included. That deal lifts direct overseas possession of Safaricom to 55% and reduces the state to twenty%.
The consolidation brings Safaricom extra firmly below the Vodafone and Vodacom construction at a time when the group is looking for deeper scale throughout cell cash, Ethiopia, and regional digital companies.
In South Africa, the equity opinion offers Vodacom cowl to soak up a bigger slice of Safaricom’s earnings, which have change into a core supply of progress for the group’s wider portfolio.
The JSE approval strikes the transaction nearer to completion, pending ultimate regulatory steps in Kenya and inside the group construction.
Beneficial learn: No expat CEOs: Kenya’s ultimate situation in landmark Safaricom sale
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