Kenya’s High Court has voided Vodacom Group’s purchase of a 15% government stake in the country’s largest telco, Safaricom, putting a KES 204.3 billion ($1.58 billion) deal at risk less than three months after it closed.
The ruling could unwind one of Kenya’s biggest corporate transactions and force the government to return a stake it had already sold as part of a wider plan to raise money from state assets.
On Tuesday, a three-judge bench ruled that the sale was unconstitutional, saying the government withheld key information from the public, the cabinet, and parliament, and misrepresented the nature of the transaction. The court ruled that what was presented as a partial divestment gave Vodacom control of Safaricom and amounted to a takeover.
The court declared the sale invalid and ordered the 15% stake returned to the government on behalf of Kenyans.
Originally published by TechCabal.