Vodafone Kenya Limited has announced its intention to acquire 604,913,400 ordinary shares—equivalent to a 10 percent shareholding—in Safaricom PLC from the Government of Kenya. The proposed transaction is part of a wider internal reorganisation of Vodafone’s African holdings, aimed at strengthening strategic alignment within the Vodafone Group.
The move was disclosed in a formal public announcement issued under the Capital Markets (Take-overs and Mergers) Regulations, 2002, and signals an important shift in the ownership structure of one of Kenya’s most valuable companies.
Government to Sell 10% of Safaricom
Currently, the Government of Kenya holds 35% of Safaricom, a shareholding it has maintained since the telco’s 2008 IPO. Through this transaction, the government seeks to dispose of 10%, reducing its direct stake to 25%.
According to the disclosure, Vodafone Kenya—already a significant shareholder—holds 9,060,000,000 shares, representing 35% of Safaricom’s issued share capital. The planned acquisition will increase Vodafone’s effective influence as part of a larger restructuring involving Vodafone Group, Vodacom Group, and Vodacom South Africa.
Valuation and Purchase Terms
The shares are to be acquired at a volume-weighted average price, calculated over a ninety-day period immediately preceding the announcement. This pricing formula is intended to ensure a fair valuation aligned with market performance on the NSE.
Following the acquisition, Safaricom’s ownership structure will shift, with Vodafone’s indirect and direct stakes consolidating under the Vodacom Group umbrella.
Aims of the Transaction
Vodafone outlines several reasons for the move:
1. Strengthening regional integration: Aligning Safaricom with Vodacom Group’s broader African operations.
2. Simplifying corporate structure: Consolidating Vodafone’s African assets under a single management framework.
3. Enhancing operational efficiency: Creating clearer lines of control, decision-making, and investment flows.
4. Supporting future growth: Leveraging combined expertise and resources for innovation and market expansion.
The reorganisation also allows Vodafone Group to streamline its investments while preserving Safaricom as a key strategic business in East Africa.
Regulatory Approvals and Exemptions
Vodafone Kenya has applied for an exemption from the requirement to make a full takeover offer, arguing that:
a) The transaction does not amount to a change of control.
b) It is part of an internal restructuring rather than an external acquisition.
c) Safaricom’s operations, governance, and independence will not be compromised.
The Capital Markets Authority (CMA) will evaluate the application and determine whether the exemption is justified.
Parties Acting in Concert
The announcement also lists entities considered to be “acting in concert,” including:
1) Vodacom Group Limited
2) Vodafone Group PLC
3) Vodafone International BV
4) Vodafone Investments Luxembourg
5) Various senior executives of both Vodafone and Vodacom
This grouping indicates that the acquisition is part of a coordinated corporate strategy within the wider Vodafone ecosystem.
Safaricom’s Strategic Importance
Safaricom remains one of Africa’s most influential telecommunications providers, with its trailblazing M-Pesa platform, expanding fintech services, and extensive mobile network. Consolidation within the Vodafone-Vodacom family is expected to bolster its innovation capabilities and regional reach.
Analysts note that government divestiture of part of its stake has long been anticipated, given Safaricom’s maturity, market stability, and strong institutional ownership.
What’s Next?
Upon completion of regulatory approvals, Vodafone Kenya will finalize the share purchase and complete the internal reorganisation. Safaricom will continue operating as a Kenyan publicly listed company, with no expected disruption to its services or leadership.
The transaction comes at a critical time, as the telecom giant positions itself for the next phase of digital transformation, financial inclusion, and regional expansion.
The move was disclosed in a formal public announcement issued under the Capital Markets (Take-overs and Mergers) Regulations, 2002, and signals an important shift in the ownership structure of one of Kenya’s most valuable companies.
Government to Sell 10% of Safaricom
Currently, the Government of Kenya holds 35% of Safaricom, a shareholding it has maintained since the telco’s 2008 IPO. Through this transaction, the government seeks to dispose of 10%, reducing its direct stake to 25%.
According to the disclosure, Vodafone Kenya—already a significant shareholder—holds 9,060,000,000 shares, representing 35% of Safaricom’s issued share capital. The planned acquisition will increase Vodafone’s effective influence as part of a larger restructuring involving Vodafone Group, Vodacom Group, and Vodacom South Africa.
Valuation and Purchase Terms
The shares are to be acquired at a volume-weighted average price, calculated over a ninety-day period immediately preceding the announcement. This pricing formula is intended to ensure a fair valuation aligned with market performance on the NSE.
Following the acquisition, Safaricom’s ownership structure will shift, with Vodafone’s indirect and direct stakes consolidating under the Vodacom Group umbrella.
Aims of the Transaction
Vodafone outlines several reasons for the move:
1. Strengthening regional integration: Aligning Safaricom with Vodacom Group’s broader African operations.
2. Simplifying corporate structure: Consolidating Vodafone’s African assets under a single management framework.
3. Enhancing operational efficiency: Creating clearer lines of control, decision-making, and investment flows.
4. Supporting future growth: Leveraging combined expertise and resources for innovation and market expansion.
The reorganisation also allows Vodafone Group to streamline its investments while preserving Safaricom as a key strategic business in East Africa.
Regulatory Approvals and Exemptions
Vodafone Kenya has applied for an exemption from the requirement to make a full takeover offer, arguing that:
a) The transaction does not amount to a change of control.
b) It is part of an internal restructuring rather than an external acquisition.
c) Safaricom’s operations, governance, and independence will not be compromised.
The Capital Markets Authority (CMA) will evaluate the application and determine whether the exemption is justified.
Parties Acting in Concert
The announcement also lists entities considered to be “acting in concert,” including:
1) Vodacom Group Limited
2) Vodafone Group PLC
3) Vodafone International BV
4) Vodafone Investments Luxembourg
5) Various senior executives of both Vodafone and Vodacom
This grouping indicates that the acquisition is part of a coordinated corporate strategy within the wider Vodafone ecosystem.
Safaricom’s Strategic Importance
Safaricom remains one of Africa’s most influential telecommunications providers, with its trailblazing M-Pesa platform, expanding fintech services, and extensive mobile network. Consolidation within the Vodafone-Vodacom family is expected to bolster its innovation capabilities and regional reach.
Analysts note that government divestiture of part of its stake has long been anticipated, given Safaricom’s maturity, market stability, and strong institutional ownership.
What’s Next?
Upon completion of regulatory approvals, Vodafone Kenya will finalize the share purchase and complete the internal reorganisation. Safaricom will continue operating as a Kenyan publicly listed company, with no expected disruption to its services or leadership.
The transaction comes at a critical time, as the telecom giant positions itself for the next phase of digital transformation, financial inclusion, and regional expansion.
