NAIROBI, Kenya, July 1 – Vodacom has acquired the Kenyan government’s 15 percent stake in Safaricom after the Court of Appeal lifted conservatory orders that had blocked the transaction.
The acquisition increases Vodafone Kenya Limited’s, a subsidiary of Vodacom, shareholding in Safaricom to 55 percent, while the government’s stake falls to 20 percent from 35 percent. Public investors will continue to hold the remaining 25 percent of the listed telecommunications company.
The Court of Appeal recently overturned High Court orders that had suspended the planned sale, clearing the way for the transaction to proceed.
In March, High Court Judge Lawrence Mugambi had temporarily halted the proposed deal, valued at about Sh204 billion, following a petition by Fredrick Ogola and Tony Gachoka. The petitioners raised concerns over data sovereignty, public participation and other constitutional issues.
Treasury Cabinet Secretary John Mbadi has said proceeds from the sale will be used to provide seed capital for the proposed National Infrastructure Fund and Sovereign Wealth Fund.
