Vodacom says it has received a letter of support from major shareholder the Public Investment Corporation (PIC) for the telco's planned acquisitoin of a 35% stake in Kenya's Safaricom.
The PIC, which includes the Government Employees Pension Fund, holds a 15.63% interest in the Vodacom group.
"In its letter of support, the PIC has undertaken to vote in favour of the resolutions required to implement the proposed transaction at the general meeting to be convened by Vodacom group," the mobile operator said in a statement.
Last month Vodacom announced its plans to acquire a 34.94% indirect stake in Kenya's Safaricom for nearly R34.6 billion. The JSE-listed group said it would buy the strategic stake from the Vodafone group, by issuing 226.8 million new Vodacom ordinary shares. As a result, the interest held by Vodafone in the Vodacom group will increase from 65% to 69.6%.
Vodafone Kenya currently holds a 39.93% interest in Safaricom and post-transaction will retain a 12.5% interest in Vodafone Kenya - equivalent to 4.99% interest in Safaricom.
The transaciton is still subject to regulatory and shareholder approvals, but Vodacom group CEO Shameel Joosub said at the time of the announcement that the deal was a unique opportunity for the telco to diversify its revenue growth and profitability.
He said it would provide shareholders "with access to a high growth, high margin, high cash generation business operating in a high growth market".
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