Vodacom Group (VOD) investor relations material

Deal rationale and strategic fit

• Acquisition of a 20% stake in Safaricom (15% from the government, 5% from Vodafone) for $2.1 billion (KES 34/share), increasing total ownership to 55% and enabling consolidation and control.

• Strengthens diversification and scale across key African markets, especially Kenya and Ethiopia, leveraging Safaricom’s market leadership in telecom and fintech.

• Supports Vision 2030 objectives, advancing digital and financial inclusion and regional expansion.

• Safaricom’s differentiated growth outlook is driven by fintech, fiber, and expansion in Ethiopia.

• Simplifies group ownership structure, enabling efficient integration and operational flexibility.

Financial terms and conditions

• 20% stake acquired for $2.1 billion (KES 34/share), split as $1.6 billion for the government's 15% and $500 million for Vodafone's 5%.

• Total cash consideration is ZAR 36 billion, fully debt funded at favorable commercial rates.

• Upfront payment for future dividend rights to the Government of Kenya totals KES 40.2 billion (R5.3 billion for R7.4 billion in future dividends).

• Transaction costs estimated at ZAR 200–300 million, including stamp duty and brokerage.

• FY26 EV/EBITDA multiple for the incremental stake is 6.9x; average cost for 54.9% stake is KES 28/share (5.8x EV/EBITDA).

Synergies and expected cost savings

• Procurement, operational, and digital synergies expected through integration, best practice sharing, and cross-market collaboration, especially in fintech and fiber.

• Enhanced scale in financial services, with group financial services revenue contribution rising from 12.2% to 21.6%.

• Post-transaction, 95 million financial services customers and 49,400 network sites.

• Consolidation to unlock operational efficiencies and support sustainable value creation.