Safaricom PLC has announced a major restructuring of its shareholding structure following a proposed acquisition by Vodafone Kenya Limited.
The move involves Vodafone Kenya acquiring 35% of Safaricom’s issued share capital from the Government of the Republic of Kenya, a transaction valued at KES 254.1 billion (approx. USD 1.65 billion).
This acquisition will increase Vodafone Kenya’s holding in Safaricom to 40%, consolidating its position as a key strategic stakeholder. The transaction also includes an internal reorganisation, whereby Vodafone Kenya will transfer its entire shareholding in Safaricom to Vodafone International Holdings B.V. (VIHBV), a wholly owned subsidiary of Vodafone Group Plc, incorporated in the Netherlands.
“This restructuring reflects Vodafone Group’s long-term commitment to Safaricom and its role in the region’s digital transformation,” said Linda Wambua, Company Secretary, Safaricom PLC.
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Highlights of the Restructure
- Acquisition of 600 million shares from the Government of Kenya at KES 423.00 per share
- Vodafone Kenya’s total stake post-acquisition: 2.1 billion shares (40% of Safaricom)
- Transfer of shares to VIHBV, aligning Safaricom under Vodafone Group’s global structure
- No takeover offer will be made to other shareholders, pending exemption approval from the Capital Markets Authority
Despite triggering a mandatory takeover threshold under Kenyan regulations, Vodafone Kenya has formally applied for an exemption from making a public offer to remaining shareholders.
“Vodafone Kenya has made it clear that it does not intend to pursue a takeover of Safaricom PLC,” the company stated.
Advisory to Investors
Safaricom has urged shareholders and the investing public to exercise caution when trading its shares during this transition period. Regulatory approvals are pending from the Cabinet, the National Treasury, and the Competition Authority of Kenya.
For legal guidance, Safaricom is being advised by NBMA Advocates LLP.
