Nairobi Court Fast-Tracks Vodacom Safaricom Acquisition Appeal
Vodacom maintains its controlling interest in Safaricom after the Court of Appeal in Nairobi ordered the status quo be preserved during a fast-tracked legal challenge.
The Court of Appeal in Nairobi has ordered that the status quo be maintained regarding Vodacom Group Limited's acquisition of a controlling interest in Safaricom. This decision allows Vodacom to keep its position while the court fast-tracks a substantive appeal concerning the validity of the R36bn transaction.
Effective June 30, the deal involved Vodacom acquiring a 15% stake in Safaricom from the Government of Kenya and a 5% stake from Vodafone International Holdings via Vodafone Kenya. The legal challenge stems from a September 15 High Court of Kenya judgment which ruled that the Kenyan government failed to conduct robust public consultations, utilized an arbitrary pricing framework for valuation, and ignored competition implications.
Under the current appellate order, Vodafone Kenya remains the registered holder of the shares, and the purchase consideration paid to the government is preserved. The court's decision to fast-track the appeal ensures a quicker resolution to the dispute over the acquisition's legality.
