Vodacom to appeal Kenya court ruling against Safaricom stake purchase

By Reuters News

NAIROBI, Sept 16 (Reuters) - South African telecoms group Vodacom VODJ.J 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 SCOM.NR from the Kenyan government.

  • 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.

  • It ordered the 15% stake returned to the government, NTV Kenya said.

  • 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.

  • 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 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.

  • Safaricom said it was reviewing the High Court judgment and its implications.

  • A spokesperson at Kenya's finance ministry did not immediately respond to a request for comment.

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