Safaricom-Vodafone Transaction Advances Following CMA Approval

The Capital Markets Authority (CMA) has granted Vodafone Kenya Limited (VKL) an exemption from undertaking a Mandatory Takeover Offer (MTO).

This approval marks a critical regulatory milestone for the US$1.6 billion deal, which is set to become the second-largest transaction in the history of the Nairobi Securities Exchange (NSE), after the US$2.3 billion Diageo–Asahi Group Holdings share transaction involving East African Breweries PLC.

The exemption also covers an internal restructuring that will see Vodacom increase its stake in Vodafone Kenya from 87.5% to 100%.

Under the transaction, Vodafone Kenya Limited will acquire 6,009,814,200 ordinary shares in Safaricom PLC directly from the Government of Kenya, representing 15% of the company’s issued share capital.

Upon completion, Vodafone Kenya’s stake in Safaricom will stand at 55%, while the Government of Kenya’s shareholding will stand at 20%.