By Staff Writer
South African-based mobile phone operator Vodacom is close to securing its plan to buy 35% stake in Kenya’s Safaricom.
On Tuesday, Vodacom minority shareholders overwhelmingly voted in support of the transaction.
The acquisition of Safaricom provides Vodacom with a unique opportunity to diversify its financial profile in a single transaction.
In May this year, Vodacom said the estimated R35 billion transaction would further enhance its position as a leading African mobile communications company.
“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,” Vodacom Group CEO Shameel Joosub said in a statement.
“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 in both Kenya and South Africa.