Telkom mulls Safaricom stake sale

28 Jan 2004

State-owned telco Telkom Kenya has revealed that it is considering selling 11% of its mobile subsidiary Safaricom to UK-based cellco Vodafone. Telkom said it would use the funds raised from the sale to pay off some of its debt. Vodafone currently owns 40% of Safaricom, while Telkom holds the remaining 60%. The purchase would take Vodafone’s ownership to 51% , giving it management control over the cellco. Under the arrangement, Telkom’s remaining 49% stake would then be further reduced by the flotation of a 25% stake on the Nairobi stock exchange.