Vodafone To Transfer 35% Stake In Safaricom To Vodacom

Vodacom said to buy R34.6 billion Safaricom stake

The 34.6 billion-rand ($2.6 billion) deal, structured as an acquisition of the stake by Vodacom in return for new shares, is the latest move by Vodafone's chief executive Vittorio Colao to rationalise the group's disparate portfolio of interests around the world.

Customers increased by 8.6% to 37.1 million, with 3.0 million customer net additions, as our segmentation and bundle strategy continued to attract new customers, South Africa's largest mobile operator said.

All this will leave Vodafone with a raised 70% stake in Vodacom, and a much reduced 5% stake in Safaricom.

For the year, group Ebitda - a measure of operating performance - grew by 2,9% to R31,2m, up 7,1% (excluding the impact of currency fluctuations), with margins improving by 0,5 percentage points to 38,4%. This represents a 5.9 percent discount to the Safaricom share price on the Nairobi Securities Exchange at closing ahead of the announcement. Vodafone has committed to Vodacom that, if required, it will sell down a portion of its shareholding in Vodacom before the exemption expires.

Jason Bateman FINALLY signs up for Arrested Development season 5
Normally, "very probable" and "officially" don't go in the same announcement, and "this summer" offers only the slightest of time tables.

"The transaction is expected to close in the third quarter of the 2017 calendar year", said a notice published on Vodafone PLC's site yesterday.

Vodafone Group is one of the world's largest telecommunications companies and provides a range of services including voice, messaging, data and fixed communications.

In operational terms, the group - which has operations in South Africa, Tanzania, the Democratic Republic of the Congo (DRC), Lesotho and Mozambique - closed out previous year with more than 66.786 million subscribers, up 8.9% on an annualised basis. The Kenyan government will retain its 35% stake in Safaricom. The company benefits from well-invested state-of-the-art infrastructure and is the only operator with a nation-wide network which now provides 3G and 4G coverage to 85% and 25% of the population respectively. Safaricom has harnessed its proprietary fibre infrastructure to build a dedicated enterprise business, providing managed IT services to clients in the East African region, as well as to deliver fibre to homes country-wide.

Safaricom made a success of M-Pesa in Kenya whereas Vodacom's launch of M-Pesa in Tanzania in 2008 and South Africa in 2010 disappointed. Fuelled by expanding distribution channels and the expansion of products and services on offer, we increased the number of customers that use M-Pesa by 3.7 million to nearly 13 million, contributing to a 19.4% rise in M-Pesa revenue.

Related:

  • Seahawks' interest in Colin Kaepernick reportedly 'legit'

    Seahawks' interest in Colin Kaepernick reportedly 'legit'

    All the stuff that he's doing off the field, the things that he's doing in the communities, he's just serving everybody. The former 49ers quarterback has been out of work since becoming a free agent in March.

    Cyber attack hits 200000 in at least 150 countries - Europol

    Omer Fatih Sayan said the country's cyber security center is continuing operations against the malicious software. His concerns were echoed by James Clapper, former director of national intelligence under President Barack Obama.
    Danica Patrick takes wild ride in fiery wreck at Kansas

    Danica Patrick takes wild ride in fiery wreck at Kansas

    I kind of felt like Wonder Woman out there for a little while. "Feel bad", Hamlin tweeted after hearing the diagnosis Sunday. You know you're playing Russian Roulette, and at one point at time, something is going to affect you.
  • Abbas to Trump: Peace agreement must be based on two-state solution

    Abbas to Trump: Peace agreement must be based on two-state solution

    But mutual distrust between Palestinians and Israelis will be a formidable, if not impossible, barrier for Trump to overcome. Trump called on Palestinians to renounce violence and to unite both Fatah and Hamas to negotiate with Israel.
    US Urges India, Pakistan To Talk Directly On Kulbhushan Jadhav Case

    US Urges India, Pakistan To Talk Directly On Kulbhushan Jadhav Case

    Qureshi also stressed on the fact that assistance in investigation was a "fundamental requirement" for consular access. A State Department spokesperson said, "We believe India and Pakistan stand to benefit from practical cooperation".
    Celtics seek top pick, Lakers aim to keep theirs in lottery

    Celtics seek top pick, Lakers aim to keep theirs in lottery

    If the latter happens, the Lakers could absorb dealing a young player since the new prospect will take his place. The Pelicans keep their pick if it's in the Top 3, but there's about a 10% chance of that happening.
  • Guardians of the Galaxy Vol. 2 Review

    Extremely simplistic in its approach, but driven by fantastic characters and how they interact with one another. I was excited for "Guardians of the Galaxy Vol. 2" and fortunately the film exceeded my expectations.

    Ukraine says detains prankster who mooned during Eurovision

    Vitalii Sediuk is famous for his pranks as past year he assaulted Kim Kardashian and Gigi Hadid during their visits in Paris. The flasher draped in an Australian flag has turned out to be Ukranian media personality Vitalii Sediuk , ABC reports .
    'I Know That I'm Not Under Investigation'

    'I Know That I'm Not Under Investigation'

    Later, Ms Sanders said, "We want this to come to its conclusion, we want it to come to its conclusion with integrity". Trump confirmed that asked Comey on three separate occasions whether or not he was under investigation.
  • At least 74 countries affected in 'biggest ever' cyberattack

    At least 74 countries affected in 'biggest ever' cyberattack

    The spokesman, Jan Op Gen Oorth, declined to give further details Friday so as not to jeopardize the ongoing investigations. F-Secure on Friday says it's gotten reports from more than 60 countries. "Talk about a wake-up call", Hypponen said.
    Clark, Horgan, Weaver all say they're willing to work with other parties

    Clark, Horgan, Weaver all say they're willing to work with other parties

    As of early this morning, the BC Green Party does. "So it is my intention to continue to lead British Columbia's government". But Weaver said it was too soon to say whether he will back the NDP or Liberals in B.C.'s new minority parliament.
    Dismal Hull condemned to relegation

    Dismal Hull condemned to relegation

    Currently, Crystal Palace is in the 16th position and Hull City is in the 18th position in the Premier League points table. Here, Press Association Sport looks at five things we learned in the Premier League this weekend.

Comments

Latest news

Apple iOS 11: 3 Features That Can Ruin Google Android
Apple is expected to reveal macOS 10.13, watchOS 4, tvOS 11 and developments in Apple Pay and Apple Music during WWDC. The watch needs to be connected to a charger, in range of the iPhone, and charged to more than 50 percent.

Tillerson: We 'cannot reset' relations with Russian Federation
Well, Chuck, I think we have such a broad range of important issues that have to be addressed in the U.S. -Russia relationship. Asked what repercussions the Russians should face for interfering in the USA election, Tillerson did not offer any specifics.

Acting FBI director hopes to make it permanent
Cornyn also miffed Democrats earlier this year by resisting calls for a special counsel to investigate the Trump/Russia claims. If Trump can't see that, Cornyn and Rogers should ponder Graham's words - and withdraw their names from consideration.

Will enact law for Muslims if SC bans triple talaq
Former Minister Arif Khan stated that the practice, far from being fundamental to Islam, violates the Quranic mandate. "The scope of referring had all the three issues that was divorce, nikah halala , polygamy".

Trump Shared Secret Info About IS With Russians
But a photographer from Russian state-media Tass attended the meeting and took photos of a laughing Trump with Lavrov and Kislyak. The Republican head of the Senate Foreign Relations Committee, Bob Corker, called the allegations "very, very troubling" if true.

Journalist killed in Mexican state of Culiacan
Valdez's brother Rafael said the reporter had been "very happy" in recent days and had not indicated that he had received threats. The cartel is believed to be responsible for an estimated 25% of all illegal drugs that enter the United States via Mexico.

Warriors' Kerr returns to practice for 1st time in 3 weeks
Mike Brown will still be coaching the team, and it's unclear whether Kerr will be near the bench or elsewhere in Oracle Arena. The Warriors did not come out sharply this afternoon, as the Spurs opened up a 20-point lead at halftime, 62-42.

Wall's late 3 leads Wiz past Celtics 92-91, forces Game 7
The Wizards fell one win short of their goal of 50 for the regular season, but that would certainly make up for it. However, the franchise has not played in a Game 7 since the 1979 Eastern Conference finals against the Spurs.

Ex-US NSA ordered to hand over Russia probe documents
Former acting US attorney general Sally Yates testifies on May 8, 2017 before the US Senate Judiciary Committee on Capitol Hill in Washington , DC.

Caitlyn Jenner Won't Say What Gender She Desires
Reality TV star Caitlyn Jenner says she is considering entering United States politics in a bid to promote transgender issues. The name Caitlyn has plummeted in popularity with parents since it was chosen by Caitlyn Jenner .

Princess Charlotte Turns 2, Royal Family Releases Photo
A new picture of Princess Charlotte enjoying the outdoors, taken by her mother, has been released ahead of her second birthday. Unlike her brother, who hammed it up for his close up at the same age, Charlotte appears more reserved in front of the camera.

200000 cyberattack victims in 150-plus states: Europol
Most other malicious programs rely on humans to spread by tricking them into clicking on an attachment harbouring the attack code. The company said the virus has been localized and "technical work is underway to destroy it and update the antivirus protection".

Trump Says 'Everybody', Not Only Australia, Beats The US In Healthcare
But Sanders, who ran for the Democratic presidential nomination previous year , said the U.S. should look to Australia on health. "Again, he was complimenting the prime minister and we're focused on a healthcare plan that works here".

The new Mother's Day must-have gift: an experience
What is Mother's Day to most moms? Moreover, we can pay a gratitude towards her for the bounds and bounds of love given by her. Mother's Day is about pampering your mom so if you can't afford a real spa trip for her make her one at home.

Mourinho confirms Romero to start over De Gea in Europa League final
We never had one occasion to rest, not even to train properly, so it was not a choice. Asked what had made it such a tough season, he replied: "The players and the club".

Other news