Vodafone has this morning announced that it is set to transfer 35% of its stake worth $2.8 billion to Vodacom Group Limited. Vodafone International Holdings, which is a subsidiary owner of the stake has proposed to transfer its shares to Vodacom Group Limited, a sub-Saharan Africa subsidiary.

According to a position statement written this morning by Safaricom, an agreement will be reached by Vodafone to exchange a 35% indirect interest in Safaricom for new ordinary Vodacom shares but will continue to hold a 5% indirect interest in Safaricom. This is in addition to the interest held through Vodacom.

Vodafone also assured that there will still be partnership between the Government of Kenya, Safaricom and the Vodafone Group. This as laid out in the statement will be to ensure the continued support for success between the two telecommunication giants.

Bob Collymore, Safaricom CEO also mentioned in the statement said that this move will not in any way affect the goals that have been laid out by the company. He said that the agreement will ensure the Government of Kenya has a strong representation at Board and management levels and continued expansion of Safaricom. Bob Collymore also said that this move will push for M-pesa to enter other markets in the Continent.

The transfer is still awaiting confirmation as there will be approvals that are yet to be made. Minority shareholders of Vodacom, Financial Surveillance Department of South African Reserve Bank and Kenya Capital Markets Authority all need to make approvals so that the transfer goes through.