JOHANNESBURG - Vodacom says it will appeal a Kenyan court ruling that threatens its increased control of Safaricom, sending the mobile giant’s share price lower.
The ruling deals a blow to Vodacom’s ownership of Kenya’s largest telecommunications company, which provides mobile, internet and mobile-money services across the country.
A Kenyan court found that Vodacom’s purchase of a 15 percent stake in Safaricom was unlawful, ruling that the transaction lacked transparency and was not conducted through a competitive bidding process.
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The court ordered that the stake be returned to the Kenyan government.
Vodacom has confirmed that it will challenge the decision on appeal.
If the appeal fails, Kenya could be required to refund approximately $1.9-billion that Vodacom has already paid for the stake.