NAIROBI, Kenya, June 30 – The Capital Markets Authority (CMA) has granted Vodafone Kenya Limited (VKL) an exemption from making a mandatory takeover offer, paving the way for the next phase of a proposed Sh206 billion (US$1.6 billion) shareholding transaction involving Safaricom PLC.
The exemption allows Vodafone Kenya to proceed with the acquisition of 6.01 billion ordinary shares in Safaricom from the Government of Kenya, equivalent to a 15 percent stake in the telecommunications company.
The CMA also approved an internal restructuring that will see Vodacom increase its shareholding in Vodafone Kenya from 87.5 percent to 100 percent.
Once the transaction is completed, Vodafone Kenya’s stake in Safaricom will increase to 55 percent, while the Government of Kenya’s shareholding will reduce to 20 percent.
The deal is expected to rank among the largest transactions in the history of the Nairobi Securities Exchange by value, subject to the completion of the remaining regulatory and transaction requirements.
