Vodafone’s Safaricom offer rejected by state

29 Jul 2005

The government of Kenya has rejected Vodafone’s offer for an additional 11% stake in Kenyan mobile operator Safaricom – scuppering the UK group’s plans to seize control of the country’s leading wireless player. Vodafone had offered USD100 million for the stake, which would have given the unlisted firm a market valuation of USD909 million and made it the country’s second largest company in terms of market value, behind East African Breweries Limited. State-owned Telkom Kenya holds the remaining 60% of Safaricom, and Kenya’s Information and Communications Minister Raphael Tuju says that is not going to change for the time being. The government is awaiting a report from US-based PKF Consulting which is submitting recommendations on how best to proceed with Telkom’s privatisation.

Kenya, Safaricom