The Lower Eastern Times Opening The Third Eye
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The Capital Markets Authority (CMA) has approved an exemption allowing Vodafone Kenya Limited (VKL) to proceed without making a mandatory takeover offer, clearing a key hurdle for a proposed Sh206 billion (US$1.6 billion) transaction involving Safaricom PLC.
The approval enables Vodafone Kenya to acquire 6.01 billion ordinary shares in Safaricom from the Government of Kenya, representing a 15 per cent stake in the telecom company.
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CMA also gave the green light to an internal restructuring that will see Vodacom increase its ownership in Vodafone Kenya from 87.5 per cent to full ownership.
Following the completion of the transaction, Vodafone Kenya’s stake in Safaricom will rise to 55 per cent, while the Government of Kenya’s shareholding will decline to 20 per cent.
Once finalized, the Sh206 billion transaction is expected to be one of the largest deals ever undertaken on the Nairobi Securities Exchange, subject to the fulfilment of all remaining regulatory approvals and transaction conditions.
