Shareholders approve Sh7bn yuMobile deal

Safaricom owners have given the green light to the mobile telephone firm’s move to acquire YuMobile assets for $80 million.
The Sh7.2 billion deal was approved by 75 per cent of the shareholders at the sixth annual meeting at Safaricom Stadium in Kasarani, Nairobi Tuesday.

The transaction is, however, subject to regulatory endorsement and has so far been approved by the Communications Authority of Kenya pending approval from the Competition Authority of Kenya.
The deal that is expected to be complete in the last quarter of this year will leave Safaricom in charge of yuMobile’s network, IT and office infrastructure, while Airtel acquires the company’s subscribers. 

“The 100 per cent acquisition of the assets now makes East Africa Tower Company Ltd a subsidiary of Safaricom Ltd, subject to regulatory approval.

GREATER CAPABILITY
Safaricom’s board chairman, Mr Nicholas Ng’ang’a, said during the annual meeting that the company “holds spectrum including other infrastructure that gives Safaricom greater capability to provide service to consumers.”

The acquisition will be funded through Safaricom cash flow, and will not affect shareholders’ dividends, he said.
Those present approved the deal after a detailed inquiry of the acquisition.

Close to 90 per cent of yuMobile’s employees will be absorbed by Safaricom and Airtel.

yuMobile made an entry in Kenya in 2007-2008 after an investment by Essar of India and local partners.
Safaricom also updated shareholders on the ongoing upgrading of the M-Pesa platform, which is expected to improve efficiency and reduce downtime.

Safaricom chief financial officer John Tombleson said the company has prioritised the lives of shareholders over the last five years.

“We have given the best dividends; this year in October, shareholders will receive dividend payouts of 47 cents, which is the highest in Kenya,” he said.