Shareholders of Kenyan telecoms firm Safaricom are due to vote on whether to give Vodafone Kenya the right to nominate the company’s CEO once Vodafone holds more than 50% of Safaricom’s shares, Safaricom said on Wednesday.
Vodacom, which already owned 39.9% of Safaricom through Vodafone Kenya, agreed in December to buy Kenya’s 15% stake for about $1.6bn in a deal that lifted its holding to 55%, while the Kenyan government’s stake fell to 20%.
The public holds the rest of the shares listed on the Nairobi Securities Exchange. The share acquisition was completed on June 30. Safaricom is due to hold its AGM meeting on July 31.
The CEO is to be appointed from a list of nominees provided by Vodafone Kenya while it holds more than 50% of Safaricom’s issued share capital, Safaricom said in a notice announcing its AGM.
The proposed amendment also directs Safaricom’s board to encourage “a predominantly Kenyan character” in the company’s senior management and executive committee.
The board minimum is set at seven directors with no maximum, and both Vodafone Kenya and the government are entitled to appoint one director per complete 10% shareholding.
The consent of the Kenyan government is required for any material brand change and for expansion outside Kenya and Ethiopia.
For the resolutions to pass, 75% of shareholders have to vote in support.
Reuters
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