Physical Address
60 Ekwema Cres, Layout 460281, Imo
Vodacom Obtains Deloitte Approval for $2.1 Billion Safaricom Stake Acquisition
Vodacom Group, South Africa’s biggest mobile operator, has just scored a major green light for a big deal it’s been working on. On December 5, the audit firm Deloitte gave its independent thumbs up on Vodacom’s plan to buy an extra 20% stake in Kenya’s Safaricom for $2.1 billion. This confirmation is a big deal because it shows the purchase price is fair for Vodacom’s shareholders, clearing an important regulatory hurdle back home.
This approval, known as a fairness opinion, is key since the Johannesburg Stock Exchange (JSE) calls this a small related-party transaction. That means Vodacom had to prove the price of KES 34 ($0.26) per share makes sense, especially for minority shareholders who don’t have much say in the deal terms. Deloitte’s sign-off gave the independent confirmation that the price is within a reasonable valuation range for Safaricom shares.
Read Next: Rwanda Introduces eKash to Accelerate a Cashless Economy
After Deloitte’s approval, the fairness opinion is now available for shareholders to look at in Vodacom’s offices for 28 days from December 5. This gives investors the chance to check the legal and financial reasoning behind the deal before everything moves forward.
The deal centers on Vodacom Group acquiring Vodafone Kenya—the holding company that controls Safaricom shares on behalf of the wider Vodafone group. While Vodafone remains the ultimate parent, Vodacom acts as the main African operator running most of Vodafone’s business on the continent. This restructuring shifts more ownership of Safaricom to Vodacom, strengthening the South African company’s control over the Nairobi-based firm. Meanwhile, Vodafone Kenya will have a direct role in a related deal involving the Kenyan government.
This whole acquisition is part of a bigger reshuffle involving East Africa’s most profitable company. On the Kenyan side, Vodafone Kenya is buying a 15% stake from the Kenyan government for KES 204.3 billion ($1.58 billion), which goes up to KES 244.5 billion ($1.89 billion) when an upfront dividend payment is included. This move raises foreign ownership of Safaricom to 55% and cuts the Kenyan state’s stake down to 20%.
Read Next: Kenya Imposes Stricter Regulations on Vodacom and Safaricom
By bringing more Safaricom shares firmly under Vodacom and Vodafone, this deal helps the group expand its reach, especially in mobile money, Ethiopia’s fast-growing market, and other regional digital services. For Vodacom in South Africa, getting this fairness opinion means they can confidently take on a bigger portion of Safaricom’s profits, which have become an important growth area in their overall business.
With Deloitte’s sign-off and the JSE’s approval, Vodacom is closer than ever to finalizing the deal, with just a few more regulatory approvals needed in Kenya and within the Vodafone group. This marks a big step forward in Vodacom’s strategy to deepen its presence and influence across Africa through Safaricom’s leading position.
Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.
