Vodacom's plans to acquire a 35% stake in Kenya's Safaricom received a positive boost today when the group's minority shareholders voted overwhelmingly in support of the transaction.
In May, Vodacom announced its plans to acquire a 34.94% indirect stake in Kenya's Safaricom for R34.6 billion. The JSE-listed group said it would buy the strategic stake from the Vodafone group, by issuing 226.8 million new Vodacom ordinary shares. As a result, the interest held by Vodafone in the Vodacom group will increase from 65% to 69.6%.
According to Vodacom, the proposed acquisition would further enhance its position as a leading African mobile communications provider and a unique opportunity to diversify its financial profile in a single transaction.
Vodacom CEO Shameel Joosub says, "The vote of confidence from Vodacom's minority shareholders is an important milestone in our journey to become a leading digital company and empowering a connected society. This is an exciting deal that provides Vodacom shareholders with access to a high growth, high margin and high cash generating business in the attractive Kenyan market.
"The proposed transaction increases our presence in East Africa and makes Vodacom a formidable player in financial services on the continent."
The transaction remains subject to certain regulatory approvals and conditions precedent in both Kenya and SA.
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