HomeNewsPoliticsSafaricom reveals ownership of Ethiopia venture

Safaricom reveals ownership of Ethiopia venture

- Advertisement -Spot_Img


Companies

Safaricom reveals ownership of Ethiopia venture


Safcom-Ndegwa

Safaricom chief executive Peter Ndegwa during the company’s launch of 5G. FILE PHOTO | NMG

Safaricom #ticker:SCOM will own a majority stake in a series of companies formed for entry into Ethiopia’s telecoms market, giving the firm effective ownership of 55.7 per cent in the new venture.

The Nairobi Securities Exchange-listed company has disclosed the exact ownership structure of the consortium that on Saturday won a licence to enter the new market at a cost of $850 million (Sh91.6 billion).

Japan’s conglomerate Sumitomo Corporation is the second-largest investor with a 27.2 per cent stake, followed by UK’s sovereign investment fund CDC Group (10.9 per cent) and South Africa’s Vodacom Group (6.2 per cent).

Vodafamily Ethiopia Holding Company Limited, incorporated in England, will own Netherlands-registered Global Partnership for Ethiopia B.V. (GPE).

GPE will in turn own a new operating company in Ethiopia whose licence will run for 15 years, with the right to apply for an additional 15 years.

“As Safaricom will directly or indirectly hold more than 50 per cent equity stake in each of the consortium companies, each such consortium company will become a subsidiary company of Safaricom,” the telco said in a notice.

“The consortium, through the operating company, intends to commence commercial operations in 2022.”

The use of multiple investment vehicles will give the venture flexibility in terms of more favourable taxation and debt financing.

The Safaricom group beat out a rival bid from a consortium led by South Africa’s MTN Group whose offer of $600 million (Sh64.7 billion) was deemed too low by Ethiopian officials.



Source link

- Advertisement -Spot_Img
88E70B70D1Aa46A497A524Eca9E5C16A?S=96&D=Mm&R=G Safaricom Reveals Ownership Of Ethiopia Venture
Kenyan Maghttp://kenyanmag.co.ke/
Connecting you to the real story
- Advertisement -Spot_Img
Stay Connected
16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe
Must Read
- Advertisement -Spot_Img
Related News
- Advertisement -Spot_Img

Leave a Reply

%d bloggers like this: