Vodafone Considering Selling Africa Business Unit Including Stake at Safaricom

0

A report published by Bloomberg has revealed that Vodafone Group is considering ways to improve the performance of its African business,

This consideration could include the possibility of extracting more value from its 65% stake in Vodacom Group, which operates in the African market valued at USD 14 billion, and owns a stake in key telcos such as Kenya’s Safaricom at 35 percent.

Vodafone owns 5 percent of the telco.

Reportedly, Vodafone is working with advisors to evaluate options such as merging with other operators, divesting assets in specific markets, or selling a stake in its African market.

While Vodafone has always considered the African unit as a crucial part of its group, the recent decline in share prices has prompted the company to consider a broad range of alternatives.

READ MORE: Kenya Government Takes Full Control of Telkom

It has also been revealed that Liberty Global, Xavier Niel, and Emirates Telecommunications Group are among the strategic investors who have recently taken an interest in Vodafone.

It is not clear whether the discussions regarding Vodafone’s African business will result in any transaction. Vodafone had stated that Vodacom is a vital part of the company, and there are no current talks about a potential sale, but that could change.

Meanwhile, Etisalat, which is Vodafone’s largest shareholder, has reportedly been exploring options for investment in Vodacom, including buying Vodafone’s stake or merging their African operations with Vodacom.

Vodafone’s stake in Vodacom may attract interest from other potential bidders, as the company has been under pressure to improve its performance and has recently sold assets.

Vodacom operates in various African countries, including South Africa, Tanzania, and DRC, and Vodafone’s stake in the company has increased to 65%.

Previous articleEquity Bank to M-PESA, Airtel Money Charges for 2023
Next articleLoop Charges for M-PESA, Payments, and ATM Withdrawal
Kenn Abuya is a friend of technology, with bias in enterprise and mobile tech. Share your thoughts, tips and hate mail at [email protected]