Shareholders in Kenya’s biggest telecommunications company, Safaricom, will vote later this month on a proposal that would give Vodafone Kenya the right to nominate the company’s chief executive, reflecting the British telecom group’s new controlling stake.
The proposed changes to Safaricom’s Articles of Association will be presented at the company’s annual general meeting on July 31. If approved, Vodafone Kenya would be entitled to nominate the CEO for appointment by the board for as long as it directly or indirectly holds more than 50% of Safaricom’s issued shares.
The vote follows the completion on June 30 of Vodacom’s $1.6 billion acquisition of the Kenyan government’s 15% stake in Safaricom, increasing Vodafone’s effective holding through its South African subsidiary to about 55%. The Kenyan government’s stake has fallen to 20%, while the remaining shares are held by public investors and traded on the Nairobi Securities Exchange.
In addition to the CEO nomination rights, shareholders will also consider governance changes that would allow Vodafone Kenya to nominate the chair of the board and a majority of directors while it remains the majority shareholder, aligning Safaricom’s governance with its new ownership structure.
The proposed amendments mark a significant shift in the governance of one of East Africa’s most valuable listed companies. Safaricom, best known for its M-Pesa mobile money platform, has long operated under a shared ownership model between the Kenyan government and Vodafone. Approval of the changes would formalize Vodafone’s greater influence over the company’s strategic leadership following its move to majority ownership.
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