Vodacom Group has confirmed that it remains the registered holder of its 55% stake in Safaricom as Kenya’s Court of Appeal considers a challenge to the $1.6 billion acquisition, keeping the ownership dispute alive even as the enlarged group reports stronger financial services revenue.
In its interim results for the six months ended September 30, released on November 10, Vodacom said the Court of Appeal had ordered the parties to maintain the status quo pending determination of the appeal. The company therefore remains the registered shareholder of the shares acquired from the Kenyan government in June.
The dispute follows a High Court ruling declaring the acquisition of the government’s 15% stake null and void. The court found that the transaction lacked adequate public participation and that material information had not been disclosed. Vodacom and the Kenyan government are appealing the decision.
The transaction increased Vodacom’s ownership in Safaricom from 35% to 55%, making it the controlling shareholder in Kenya’s largest telecommunications operator.
Vodacom Chief Executive Shameel Joosub described the acquisition as a defining milestone in the group’s development.
“The Safaricom transaction further enhances our earnings profile, broadens our exposure to attractive high-growth markets and materially increases the contribution from financial services and digital businesses,” Joosub said in the interim results. vodacom.com+1
