Vodacom to Acquire Additional 15% Safaricom Stake in $1.6 Billion Deal, Raising Ownership to 55%

Vodacom, through its subsidiary Vodafone Kenya, is set to acquire a 15% stake in Safaricom from the Government of Kenya (GOK) in a major transaction valued at $1.6 billion (KSh 204.3 billion). The acquisition will increase Vodacom’s ownership in the telecom giant from 40% to 55%, giving it a majority stake.

The development was confirmed in a Safaricom statement issued on Thursday, noting that the company had been formally served with a notice of intention regarding the significant Proposed Transaction.

Details of the $1.6 Billion Share Purchase

Under the agreement, Vodafone Kenya will purchase an additional 6,009,814,200 ordinary shares, representing 15% of Safaricom’s issued shares, from the Kenyan government.
Safaricom stated:

“The acquisition price is KES 34.00 per share, valuing the transaction at KES 204.3 billion (approx. USD 1.6 billion).”

Following the acquisition, Safaricom’s shareholding structure will shift as follows:

• Vodacom: 55%
• Government of Kenya: 20%
• Public investors: 25%

Safaricom remains Kenya’s largest mobile network operator with roughly two-thirds of the country’s subscribers and a market valuation of approximately $8.9 billion (KSh 1.19 trillion), placing it among East Africa’s most valuable companies.

Vodacom to Take Full Control of Vodafone Kenya

As part of the broader transaction, Vodacom will also acquire Vodafone International Holdings’ 12.5% stake in Vodafone Kenya, making Vodacom the sole owner of the entity.

Safaricom explained that: “The GOK Share Acquisition and the Vodafone Kenya Acquisition are inter-conditional shareholder-to-shareholder transactions and are expected to be completed simultaneously.”

Kenyan Government’s Motivation for the Sale

Kenya’s decision to sell a significant portion of its Safaricom shares comes as the country seeks to increase revenue amid rising public debt and persistent budget deficits.
The sale is expected to generate a substantial one-off inflow that could support the government’s fiscal position.

As part of the agreement, Vodacom will pay the GOK KSh 40.2 billion upfront in exchange for future dividends that the government’s remaining 20% stake would have generated.

No Takeover Bid Planned Despite Majority Control

Although Vodacom will secure a controlling 55% stake, the telecom giant has stated it does not intend to launch a full takeover offer for the remaining shares.

Safaricom noted:

“Vodafone Kenya does NOT intend to launch a takeover offer of Safaricom. In this regard, Vodafone Kenya will be applying to the Capital Markets Authority of Kenya (CMA) for an exemption under regulation 5(1) of the Take-over Regulations.”

By seeking this exemption, Vodacom hopes to avoid the mandatory takeover procedures that would normally be triggered under regulations 3(1) and 4 of Kenya’s Takeover Regulations.

Regulatory Approvals Still Required

The completion of the proposed transaction is subject to approval from both the Capital Markets Authority (CMA) and the Kenyan Cabinet.

If approved, this acquisition will mark another strategic expansion move by Vodacom. The company last increased its Safaricom stake in 2017, following a share swap with its UK parent firm, Vodafone.