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On 14 May 2017 the Group entered into an agreement with Vodafone International Holdings B.V. (VIHBV) to acquire 87.5% of Vodafone Kenya, which in turn holds 39.94% in Safaricom Limited (Safaricom). The investment in Vodafone Kenya will be accounted for as the acquisition of a subsidiary that does not constitute a business, with the 39.94% equity interest that Vodafone Kenya holds in Safaricom treated as an investment in an associate. The acquisition is subject to various conditions precedent, one of which is the approval by the shareholders of Vodacom Group Limited other than VIHBV and its associates (as defined in the JSE Listing Requirements).
The purchase consideration will be settled on the effective date of the transaction by the issuance of 226 800 0000 Vodacom Group Limited shares and, for the equity interest in Vodafone Kenya, a fixed cash consideration not exceeding KSh394 million (approximately R51 million). The value of the consideration shares will depend on the Vodacom Group Limited share price on the effective date. If the record date of the final dividend declared by the Group for the year ended 31 March 2017 is before the effective date, additional Vodacom Group Limited shares will be issued as per the agreement. This will result in a total of 233 459 781 Vodacom Group Limited shares being issued for a subscription price of R34.6 billion. |