The government of Kenya (GoK) is set to sell its 15 per cent stake in Safaricom PLC to Vodafone Kenya Limited.
In a statement on Thursday, December 4, Safaricom said the government is selling 6,009,814,200 ordinary shares representing 15 per cent.
The Safaricom shares are being sold at a cost of Ksh34.00 per share, totalling to Ksh204.3 billion ($1.6 billion).
Vodacom has also agreed to pay the government an upfront payment of approximately Ksh40.1 billion for the right to receive Ksh55.7 billion in future Safaricom dividends that would have accrued to the government on its remaining stake.
“Safaricom PLC has been formally served with a notice of intention regarding a significant Proposed Transaction. We are announcing the intention of Vodafone Kenya Limited (“Vodafone Kenya”) to acquire an additional 15% of the issued shares in Safaricom from the Government of Kenya (GOK), representing 6,009,814,200 ordinary shares.
“The acquisition price is KES 34.00 per share, valuing the transaction at KES 204.3 billion (approx. USD 1.6 billion). Following this, Vodafone Kenya will hold a 55% shareholding in Safaricom,” Safaricom stated.
The GOK Share Acquisition is inter-conditional with an internal reorganisation where Vodacom Group Limited (Vodacom) will acquire Vodafone International Holdings B.V.’s 12.5% stake in Vodafone Kenya, resulting in Vodacom owning 100% of Vodafone Kenya.
The completion of the transaction is subject to approval by the Kenyan Cabinet, Kenyan National Assembly, CMA, Communications Authority of Kenya, Central Bank of Kenya, COMESA Competition Commission and the East African Community Competition Authority.
The Ksh240.5 billion raised from the transaction is set to be invested in the country’s new National Infrastructure Fund (NIF).
Kenya is targeting to raise Ksh600 billion to fund various infrastructure funds, including roads, dams, and energy infrastructure, among others, as a way of easing dependency on debt.
