Kenya’s government to sell a 15% stake in Safaricom to Vodafone Kenya for Sh245 billion.

This means Vodafone Kenya’s stake will rise from 40% to 55%, while the government’s stake at Safaricom drops from 35% to 20%.

Key numbers:

—Vodafone Kenya will buy the Government’s 6.01B shares (15% of Safaricom) for KES 204.3B.

—The KES 34.00 offer price implies a 21% premium to Safaricom’s KES 28.20 close.

—Vodacom Group Limited will increase its stake in Vodafone Kenya to 100% from 87.5% through an internal reorganisation involving the purchase of Vodafone International Holdings B.V.’s 50 shares, representing a 12.5% stake in Vodafone Kenya, and resulting in an additional 4.99% indirect stake in Safaricom.

—GoK will receive KES 40.2B upfront in place of future dividends that would have accrued to its retained 20% holding.

—Total cash to the state is KES 244.5B, since the KES 68.1B Vodafone-Vodacom transaction is internal and not payable to GoK.

—Following both transactions, Vodafone Kenya will hold 55.0% of Safaricom’s share capital, reinforcing its position as the company’s primary strategic shareholder.

—Post-transaction ownership: Vodafone Kenya/Vodacom ~55%, GoK ~20%, public ~25%.

—Safaricom’s share price is up 96% year to date ahead of the restructuring.