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Safaricom FY17 PBT 67BN
maka
#41 Posted : Monday, May 15, 2017 1:25:45 PM
Rank: Elder


Joined: 4/22/2010
Posts: 10,045
Location: Nairobi
Vodacom to acquire strategic stake in Safaricom for R35 billion

Dear Colleagues,

I have exceptionally exciting news to share with you. In addition to announcing a solid set of financial results this morning, the Vodacom Group has agreed on terms with Vodafone to buy a strategic interest (just under 35%) in Kenya’s market leading telco, Safaricom. To put it into context, the Safaricom transaction is worth R34.6 billion, making it almost five times bigger than the Neotel offer.

Apart from being a household name in Kenya, Safaricom is a high growth, high margin, high cash generation business that operates in a high growth market. Closer cooperation with a quality asset like Safaricom will create further value and mutually beneficial opportunities for both companies including the likes of best practice sharing, replicating Safaricom’s success in M-Pesa in Vodacom’s other territories as well as creating new pan-African enterprise solutions in other east Africa markets.

Safaricom’s leading mobile money platform, M-Pesa, is an important driver of Kenyan economic growth, providing essential financial services to over 19 million customers. The proposed transaction will improve Vodacom Group’s presence in East Africa, jointly increasing the company’s growth in financial services customers to 32 million, making it a formidable player in financial services on the continent.

From a Vodacom perspective, it offers a rare opportunity to diversify our revenue growth and profitability – all in a single transaction. For example, if we included Safaricom into the Annual Results we issued this morning, it would have proportionally equated to 12.6% of the overall group’s service revenue. It will provide a platform for further growth that we firmly believe will be to the benefit of you, our colleagues, our customers and clients, our shareholders and the communities in which we operate. Specifically, I want to emphasise the benefits from enhanced career prospects, including greater international job opportunities.

As is the case with transactions of this nature, there are certain regulatory and shareholder approvals that we will need to secure before it is finalised. As this is a related-party transaction (we are buying a stake from Vodafone, our parent company) we have made sure that all appropriate governance controls have been implemented. We have negotiated this transaction on an arm’s length basis and will see to it that it is evaluated and executed in the same spirit as we need to ensure the equitable treatment of the interests of minority shareholders in particular.

I am confident that we have negotiated an attractive price for access to an additional 28.1 million customers and one of the most successful and innovative telecoms companies in Africa. It also sets us up to occupy a leading position in sub-Saharan Africa with exposure to one-third of the region’s gross domestic product.

These are exciting times and I promise to keep you updated on the progress we make, as and when we can.
possunt quia posse videntur
Pesa Nane
#42 Posted : Tuesday, May 16, 2017 10:34:01 AM
Rank: Elder


Joined: 5/25/2012
Posts: 3,317
Location: 08c
1/3
Pesa Nane plans to be shilingi when he grows up.
Pesa Nane
#43 Posted : Tuesday, May 16, 2017 10:36:11 AM
Rank: Elder


Joined: 5/25/2012
Posts: 3,317
Location: 08c
2/3
Pesa Nane plans to be shilingi when he grows up.
Pesa Nane
#44 Posted : Tuesday, May 16, 2017 10:38:42 AM
Rank: Elder


Joined: 5/25/2012
Posts: 3,317
Location: 08c
3/3
Pesa Nane plans to be shilingi when he grows up.
Metasploit
#45 Posted : Tuesday, May 16, 2017 2:14:13 PM
Rank: Veteran


Joined: 3/26/2012
Posts: 985
Location: Dar es salaam,Tanzania
Pesa Nane wrote:
3/3


And on this day 38M shares exchange hands at 20.50

“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
heri
#46 Posted : Wednesday, May 17, 2017 7:55:20 AM
Rank: Member


Joined: 9/14/2011
Posts: 555
Location: nairobi
http://www.businessdaily...29110-h2i2ql/index.html

Vodafone, the world's second biggest mobile operator, reported a 6.1 billion euro (about Sh692 billion) loss for the year to end-March, dragged down by the troubled Indian unit it is spinning off.
Seeking to reassure investors about the future however, the group forecast growth in earnings and a jump in free cash flow for the current year, driven by stabilising average revenue from its contract customers and lower spending.
It predicted a rise in organic adjusted core earnings growth of between 4 and 8 per cent and free cash flow of about 5 billion euros (about Sh567 billion), up from 4.1 billion euros (about Sh465 billion) in the previous year.
Ericsson
#47 Posted : Wednesday, May 17, 2017 9:21:56 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,505
Location: NAIROBI
heri wrote:
http://www.businessdailyafrica.com/corporate/Vodafone-dials-up-6-3-bn-euro-annual-net-loss/539550-3929110-h2i2ql/index.html

Vodafone, the world's second biggest mobile operator, reported a 6.1 billion euro (about Sh692 billion) loss for the year to end-March, dragged down by the troubled Indian unit it is spinning off.
Seeking to reassure investors about the future however, the group forecast growth in earnings and a jump in free cash flow for the current year, driven by stabilising average revenue from its contract customers and lower spending.
It predicted a rise in organic adjusted core earnings growth of between 4 and 8 per cent and free cash flow of about 5 billion euros (about Sh567 billion), up from 4.1 billion euros (about Sh465 billion) in the previous year.


Vodafone isn't safaricom.
Let's stick to the topic
Ebenyo
#48 Posted : Wednesday, May 17, 2017 9:45:27 AM
Rank: Member


Joined: 4/4/2016
Posts: 896
Location: Kitale
Ericsson wrote:
heri wrote:
http://www.businessdailyafrica.com/corporate/Vodafone-dials-up-6-3-bn-euro-annual-net-loss/539550-3929110-h2i2ql/index.html

Vodafone, the world's second biggest mobile operator, reported a 6.1 billion euro (about Sh692 billion) loss for the year to end-March, dragged down by the troubled Indian unit it is spinning off.
Seeking to reassure investors about the future however, the group forecast growth in earnings and a jump in free cash flow for the current year, driven by stabilising average revenue from its contract customers and lower spending.
It predicted a rise in organic adjusted core earnings growth of between 4 and 8 per cent and free cash flow of about 5 billion euros (about Sh567 billion), up from 4.1 billion euros (about Sh465 billion) in the previous year.


Vodafone isn't safaricom.
Let's stick to the topic


This is the likely reason why they sold their 30% stake in safaricom to vodacom.
1.Cut down on expenses2.Save a portion of the income 3.Invest heavily
Ericsson
#49 Posted : Wednesday, May 17, 2017 9:56:55 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,505
Location: NAIROBI
Ebenyo wrote:
Ericsson wrote:
heri wrote:
http://www.businessdailyafrica.com/corporate/Vodafone-dials-up-6-3-bn-euro-annual-net-loss/539550-3929110-h2i2ql/index.html

Vodafone, the world's second biggest mobile operator, reported a 6.1 billion euro (about Sh692 billion) loss for the year to end-March, dragged down by the troubled Indian unit it is spinning off.
Seeking to reassure investors about the future however, the group forecast growth in earnings and a jump in free cash flow for the current year, driven by stabilising average revenue from its contract customers and lower spending.
It predicted a rise in organic adjusted core earnings growth of between 4 and 8 per cent and free cash flow of about 5 billion euros (about Sh567 billion), up from 4.1 billion euros (about Sh465 billion) in the previous year.


Vodafone isn't safaricom.
Let's stick to the topic


This is the likely reason why they sold their 30% stake in safaricom to vodacom.


Nothing changes Ebenyo
Vodafone still owns Vodacom (65%) so that reason you have given doesn't hold water.
No money is changing hands rather transfer of ownership
sparkly
#50 Posted : Thursday, May 18, 2017 3:13:18 PM
Rank: Elder


Joined: 9/23/2009
Posts: 5,550
Location: Enk are Nyirobi
Ericsson wrote:
Ebenyo wrote:
Ericsson wrote:
heri wrote:
http://www.businessdailyafrica.com/corporate/Vodafone-dials-up-6-3-bn-euro-annual-net-loss/539550-3929110-h2i2ql/index.html

Vodafone, the world's second biggest mobile operator, reported a 6.1 billion euro (about Sh692 billion) loss for the year to end-March, dragged down by the troubled Indian unit it is spinning off.
Seeking to reassure investors about the future however, the group forecast growth in earnings and a jump in free cash flow for the current year, driven by stabilising average revenue from its contract customers and lower spending.
It predicted a rise in organic adjusted core earnings growth of between 4 and 8 per cent and free cash flow of about 5 billion euros (about Sh567 billion), up from 4.1 billion euros (about Sh465 billion) in the previous year.


Vodafone isn't safaricom.
Let's stick to the topic


This is the likely reason why they sold their 30% stake in safaricom to vodacom.


Nothing changes Ebenyo
Vodafone still owns Vodacom (65%) so that reason you have given doesn't hold water.
No money is changing hands rather transfer of ownership


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.
Life is short. Live passionately.
Pesa Nane
#51 Posted : Thursday, May 18, 2017 3:20:13 PM
Rank: Elder


Joined: 5/25/2012
Posts: 3,317
Location: 08c
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34
Pesa Nane plans to be shilingi when he grows up.
murchr
#52 Posted : Thursday, May 18, 2017 4:19:05 PM
Rank: Elder


Joined: 2/26/2012
Posts: 11,563
Pesa Nane wrote:
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34


Long wait for what @sparky? Isnt Safaricom a stand alone company with ownership of 35% Vodacom, 35% GOK 5% Vodafone and 25% Wanjiku?

What is Wanjiku waiting for?

Little bird informs me the withholding tax attracted on dividends has something on this share swap.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
muandiwambeu
#53 Posted : Thursday, May 18, 2017 6:16:12 PM
Rank: Member


Joined: 8/28/2015
Posts: 713
murchr wrote:
Pesa Nane wrote:
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34


Long wait for what @sparky? Isnt Safaricom a stand alone company with ownership of 35% Vodacom, 35% GOK 5% Vodafone and 25% Wanjiku?

What is Wanjiku waiting for?

Little bird informs me the withholding tax attracted on dividends has something on this share swap.

I tend to disagree, so won't dividends due to vodacom based in Azania not attract W.HT. do Kenya andS.A have preferential trade agreements to that effect.
In lack of that, I support the book, sharing of risk theory advanced by @sparkly. Association is more risky than consolation any day any time unless vodacom is a 100% owned subsidiary of vodafone.
,Behold, a sower went forth to sow;....
murchr
#54 Posted : Thursday, May 18, 2017 6:24:47 PM
Rank: Elder


Joined: 2/26/2012
Posts: 11,563
muandiwambeu wrote:
murchr wrote:
Pesa Nane wrote:
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34


Long wait for what @sparky? Isnt Safaricom a stand alone company with ownership of 35% Vodacom, 35% GOK 5% Vodafone and 25% Wanjiku?

What is Wanjiku waiting for?

Little bird informs me the withholding tax attracted on dividends has something on this share swap.

I tend to disagree, so won't dividends due to vodacom based in Azania not attract W.HT. do Kenya andS.A have preferential trade agreements to that effect. Yes
In lack of that, I support the book, sharing of risk theory advanced by @sparkly. Association is more risky than consolation any day any time unless vodacom is a 100% owned subsidiary of vodafone.


Kenya to UK 15%
KE to SA - 10%

http://taxsummaries.pwc....orate-Withholding-taxes

What clause favors SA-UK?
Quote:
Lower rate of 5% applies to a beneficial owner that is a company and has a minimum holding of 10% of capital. Lower rate of 10% applies in all other cases. 15% rate applies to all dividends from property investment companies

"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Ericsson
#55 Posted : Thursday, May 18, 2017 6:40:11 PM
Rank: Elder


Joined: 12/4/2009
Posts: 3,505
Location: NAIROBI
Withholding tax SA to UK is 0%
sparkly
#56 Posted : Thursday, May 18, 2017 7:42:31 PM
Rank: Elder


Joined: 9/23/2009
Posts: 5,550
Location: Enk are Nyirobi
murchr wrote:
Pesa Nane wrote:
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34


Long wait for what @sparky? Isnt Safaricom a stand alone company with ownership of 35% Vodacom, 35% GOK 5% Vodafone and 25% Wanjiku?

What is Wanjiku waiting for?

Little bird informs me the withholding tax attracted on dividends has something on this share swap.


Price will collapse. Those buying at 20 will wait another 10 years before making a meaningful return. I concur wit @Pesa nane's assessment.
Life is short. Live passionately.
murchr
#57 Posted : Thursday, May 18, 2017 8:23:49 PM
Rank: Elder


Joined: 2/26/2012
Posts: 11,563
sparkly wrote:
murchr wrote:
Pesa Nane wrote:
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34


Long wait for what @sparky? Isnt Safaricom a stand alone company with ownership of 35% Vodacom, 35% GOK 5% Vodafone and 25% Wanjiku?

What is Wanjiku waiting for?

Little bird informs me the withholding tax attracted on dividends has something on this share swap.


Price will collapse. Those buying at 20 will wait another 10 years before making a meaningful return. I concur wit @Pesa nane's assessment.


@Sparky you've been saying that since I can remember lakini wacha hizo ng'ombe zikuje then we talk

Meanwhile


"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
lochaz-index
#58 Posted : Thursday, May 18, 2017 9:59:48 PM
Rank: Member


Joined: 9/18/2014
Posts: 695
murchr wrote:
sparkly wrote:
murchr wrote:
Pesa Nane wrote:
sparkly wrote:


The sale of Safaricom transaction obviously impacts the Vodafone Income Statement since Safaricom was being reported as an associate rather than consolidated as a subsidiary.

Vodafone has been fattening the calf for slaughter. Objective executed flawlessly:

1. Super dividends, partly financed by borrowed money;
2. (1) above caused share price to spike (can't rule trading with internal assistance);
3. Transfer shares to Vodacom at USD 2.6B;
4. End result... book sweet dividends and capital gains in UK books.

It will be a long wait for those getting into Safaricom at current prices.


Thank you. Please read Hating on Safaricom, post #34


Long wait for what @sparky? Isnt Safaricom a stand alone company with ownership of 35% Vodacom, 35% GOK 5% Vodafone and 25% Wanjiku?

What is Wanjiku waiting for?

Little bird informs me the withholding tax attracted on dividends has something on this share swap.


Price will collapse. Those buying at 20 will wait another 10 years before making a meaningful return. I concur wit @Pesa nane's assessment.


@Sparky you've been saying that since I can remember lakini wacha hizo ng'ombe zikuje then we talk

Meanwhile



Fantastic chart showing the divergence between safcom vs broad market(NASI) vs NSE20. Since September of 2015(one and a half years), safcom has wiped the floor with both indices though it has coughed out more losses(relatively) in the post rate cap period. It has also done most of the heavy lifting after the 2789 low early in the year alongside the bounce in banking stocks. With the ink drying on the Vodafone/Vodacom deal(puts the special dividend and subsequent borrowing in perspective), I think this divergence shouldn't take long to resolve itself.
The main purpose of the stock market is to make fools of as many people as possible.
Ericsson
#59 Posted : Monday, May 22, 2017 10:57:54 AM
Rank: Elder


Joined: 12/4/2009
Posts: 3,505
Location: NAIROBI
BNP Pariba Asset Mgt loaded up 17.12m shares of Safaricom in March
bartum
#60 Posted : Monday, May 22, 2017 1:57:03 PM
Rank: Veteran


Joined: 8/11/2010
Posts: 951
Location: nairobi
Ericsson wrote:
BNP Pariba Asset Mgt loaded up 17.12m shares of Safaricom in March

Hiyo ni kidogo
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