Vodacom takes control of Safaricom in a $2.1 billion deal
South African telecoms group Vodacom completed its $2.1 billion purchase of a further 20% of Safaricom on June 30. The deal gives Vodacom a 55% stake and control of one of East Africa's most profitable companies.
According to the Rio Times, Vodacom raised its stake in Safaricom to 55%, taking control of the company. The $2.1 billion transaction closed on June 30 and strengthens the South African group's position in the East African market.
Kenya-based Safaricom runs the M-Pesa mobile-money service and stands out as one of the region's most profitable operators. Vodacom's larger holding lets it play a more decisive role in the company's future strategy.
The deal is seen as part of an ongoing wave of consolidation in the continent's telecoms sector. The transaction's effects on Safaricom's management and investment plans should become clearer in the period ahead.
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