Vodacom Group has cleared an important hurdle in its plan to buy an additional 20% stake in Safaricom for $2.1 billion. Deloitte, acting as an independent auditor, has confirmed that the offer price is fair to shareholders. This approval is crucial because the deal is classified as a small related-party transaction under Johannesburg Stock Exchange rules, meaning Vodacom must prove the price is reasonable for minority investors who cannot influence the terms.
The fairness opinion, issued on December 5, confirms that the KES 34 per share valuation falls within acceptable ranges for Safaricom. With the JSE giving its approval, shareholders can now inspect the opinion at Vodacom’s offices for 28 days. This allows them to understand the legal and financial reasoning behind the transaction before it progresses.
The deal involves Vodacom acquiring Vodafone Kenya, the holding company through which Vodafone controls Safaricom shares. Even though Vodafone remains the global parent, Vodacom is the main operator handling much of the group’s African footprint. By shifting more Safaricom ownership to Vodacom, the group strengthens its grip on the Nairobi-based telecom giant, while Vodafone Kenya takes on a separate transaction with the Kenyan government.
This acquisition is part of a broader reshaping of Safaricom’s ownership. In Kenya, Vodafone Kenya is also buying a 15% stake from the government for up to KES 244.5 billion, depending on dividend adjustments. The move increases foreign ownership of Safaricom to 55% and reduces the state’s holding to 20%. For Vodacom, the JSE’s sign-off brings it closer to securing a larger share of Safaricom’s earnings, which have become central to its growth strategy, especially as the group expands mobile money, pushes into Ethiopia, and builds digital services across the region.