Vodafone Group is selling its $2.6 billion stake in Kenya’s Safaricom to its majority-owned Vodacom Group. The all-share deal will transfer a 35-percent stake in Safaricom to Vodacom in return for stock in the Johannesburg-based unit. This will raise the parent company’s stake in its South African business to about 70 percent.
Vodafone said in a statement that Vodacom will issue 226.8 million new shares to its parent company for the stake. The UK company will retain a five percent holding in Nairobi-based Safaricom, Kenya’s biggest company, while the East African country’s government will keep 35 percent.
Pictured: Safaricom CEO, Bob Collymore
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