Vodacom to Appeal Kenyan Court Ruling Over 15% Safaricom Stake Purchase
Vodacom's Response to Kenyan Court Decision
NAIROBI, Sept 16 (Reuters) - South African telecoms group Vodacom plans to appeal a Kenyan court ruling that ordered the cancellation of the deal it completed earlier this year to buy an additional 15% stake in Kenya's Safaricom from the Kenyan government.
Details of the High Court Ruling
• On Tuesday, Kenya's High Court said the Kenyan government's sale of the Safaricom stake did not adequately involve the public and that the process was marked by concealment of material information, Kenyan television station NTV Kenya reported.
Order to Return Safaricom Stake
• It ordered the 15% stake returned to the government, NTV Kenya said.
Vodacom's Appeal Plans
• Vodacom said in a statement late on Tuesday that it would lodge an appeal with Kenya's Court of Appeal and apply to the High Court to stay the matter until its appeal is heard.
Background of the Safaricom Stake Deal
Deal Value and Shareholding Changes
• The $1.6 billion deal, announced last December and completed in June, lifted Vodacom's effective shareholding in Safaricom to 55%, while the Kenyan government's stake fell to 20%.
Kenyan Government's Asset Sale Strategy
• Kenyan President William Ruto's administration has been trying to bolster public finances by selling some state assets as it faces hefty annual debt repayments that absorb 40% of government revenue.
Reactions from Stakeholders
Safaricom's Position
• Safaricom said it was reviewing the High Court judgment and its implications.
Finance Ministry's Response
• A spokesperson at Kenya's finance ministry did not immediately respond to a request for comment.
Reporting Credits
(Reporting by George Obulutsa;Editing by Alexander Winning and Tomasz Janowski)
