The government (thru Telkom) owns 60% while Vodaphone owns 40%. The current CEO is a Vodaphone nominee/appointee.
- Vodaphone had offered $100 Million for 11% of Safaricom in 2005 thus valuing Safaricom at $900 Million (KShs 68 Billion)
- PKF valued Telkom's 60% of Safaricom between KShs 34-57 Billion thus valuing the entire shareholding of Safaricom at KShs 57-95 Billion range.
Opinion in Blue
The listing could be achieved as an "Offer for Sale" or "IPO".
The IPO is a better way to go since it will raise cash for Safaricom to reinvest in Kenya & within the EAC while keeping the cash out of the government's hands so close to election time.
Nevertheless, the need for cash to settle Telkom's debts, facilitate restructuring & for those on the government's gravy train, it is likely there will be an "Offer for Sale".
Based on the hype & profitability of Safaricom, the IPO will be a blockbuster if fairly priced. I expect strong interest from Kenyans from all walks of life, Kenyan diaspora, EA citizens, EA institutions & foreign fund managers.