Vodacom Clears Major Hurdle as Deloitte Validates $2.1B Safaricom Stake Buy

 

Vodacom Group has secured a crucial green light in its push to deepen its hold on Safaricom. Audit giant Deloitte has signed off on the South African operator’s plan to acquire an additional 20% stake in Kenya’s biggest telco for $2.1 billion, concluding that the offer is fair to Vodacom’s shareholders.

This independent assessment, dated December 5, fulfils a mandatory step under the Johannesburg Stock Exchange rules, since the transaction falls under a “small related-party” category. Under these guidelines, Vodacom must prove that minority shareholders who have little influence over deal terms are not short-changed by the KES 34 ($0.26) per-share valuation.

With Deloitte’s stamp of approval, the JSE has accepted the fairness opinion, and Vodacom is now required to make the report available for public inspection at its offices for 28 days. This window allows shareholders to scrutinise the rationale, valuation approach, and legal basis of the deal before it advances to the next stage.

Inside the Transaction: How Ownership Is Being Re-Engineered

The opinion pertains to Vodacom’s plan to acquire Vodafone Kenya, the Vodafone-controlled entity that holds Safaricom shares on behalf of the broader Vodafone Group.

Although Vodafone remains the global parent, Vodacom is the flagship operator for sub-Saharan Africa, and this restructuring shifts more control of the Nairobi-based telco into the South African arm. The move also positions Vodafone Kenya to execute a parallel agreement with the Kenyan government.

READ MORE: No Expat CEOs: Kenya Sets Final Conditions in Safaricom Sale

Kenyan Government’s Stake Sale: A Bigger Shuffle in Motion

On the Kenyan side, the government is simultaneously offloading a 15% stake in Safaricom to Vodafone Kenya. That purchase comes at a hefty KES 204.3 billion ($1.58B) or KES 244.5 billion ($1.89B) when factoring in an upfront dividend payment tied to the deal.

Once completed, the shift pushes direct foreign ownership of Safaricom to 55%, while reducing the Kenyan state’s share to 20%.

It’s one of the most significant ownership realignments in Safaricom’s history and ties the telco even more tightly into the Vodafone/Vodacom corporate spine at a moment when the group is ramping up:

·         Regional mobile-money expansion

·         Integration of its Ethiopia operations

·         Broader digital-services plays across East Africa

Why This Matters for Vodacom

For Vodacom, the fairness opinion is more than a regulatory formality; it’s strategic validation. Safaricom has increasingly become one of the group’s most reliable growth engines, and securing a larger slice of its earnings strengthens Vodacom’s financial base at a time when its South African market faces slower growth and rising competitive pressure.

The JSE approval means the transaction is edging closer to completion. What remains are final regulatory sign-offs in Kenya and internal approvals across the VodafoneVodacom structure.