Kiharu MP Ndindi Nyoro has dismissed claims linking Treasury Cabinet Secretary John Mbadi to the negotiation process surrounding the sale of Safaricom.
Speaking in a recent interview, the MP noted that Mbadi’s role had been limited to relaying information rather than shaping or negotiating the agreement itself.
"Mbadi was not involved in the sale of Safaricom. He is merely a spokesperson, communicating things he does not know the origin of, and I say that with confidence," he said.
Nyoro further explained that the actual negotiations were conducted by individuals who are not government employees, adding that some of those involved have business ties with the buyers.
"I know he was not part of the negotiating team. he people who negotiated this road deal for the government and for the Kenyan people are not government employees, and some of them do business with the buyers," he added.
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Earlier in the month, the government announced plans to sell 15 percent of its stake in telecommunication giant Safaricom PLC to Vodafone Kenya Limited.
In a statement on Thursday, December 4, Safaricom announced that it has received a notice of intention by Vodafone Kenya to acquire an additional 6,009,814,200 ordinary shares representing 15 percent.
The company noted that the Kenyan government will sell the shares at a cost of Ksh34.00 per share, totalling to Ksh204.3 billion ($1.6 billion).
"Safaricom PLC has been formally served with a notice of intention regarding a significant Proposed Transaction. We are announcing the intention of Vodafone Kenya Limited ("Vodafone Kenya") to acquire an additional 15% of the issued shares in Safaricom from the Government of Kenya (GOK), representing 6,009,814,200 ordinary shares. The acquisition price is Ksh34.00 per share, valuing the transaction at Ksh204.3 billion (approx. $1.6 billion)," read the statement in part.
Vodafone, which currently has a 39.9 percent stake in Safaricom, will become the largest shareholder, holding a 55 percent stake.
The government and general public investors will, on the other hand, retain a 20npercent and 25 percent stake respectively.
"Consequently, the GOK Share Acquisition, in combination with the Vodafone Kenya Acquisition, will result in Vodafone Kenya holding a 55% shareholding in Safaricom. The GOK and the general public investors will retain approximately 20% and 25% of Safaricom’s shareholding, respectively," Safaricom stated.
The deal includes Vodacom Group Limited acquiring Vodafone International Holdings B.V.'s 12.5 percent stake in Vodafone Kenya , resulting in Vodacom owning 100 percent of Vodafone Kenya.
Vodafone Kenya will also be making an upfront payment of Ksh40.2 billion to the Kenyan government in lieu of future dividends on the GOK's residual 20% shareholding.
Further, Safaricom said Vodafone does not intend to launch a takeover offer once the acquisition is completed.
The telecommunication giant said Vodafone will apply to the Capital Markets Authority of Kenya for an exemption.
"Vodafone Kenya does not intend to launch a take-over offer of Safaricom. In this regard, Vodafone Kenya will be applying to the Capital Markets Authority of Kenya (“CMA”) for an exemption under regulation 5(1) of the Take-over Regulations from complying with the mandatory take-over procedures set out in regulation 4 of the Take-over Regulations," Safaricom stated.
