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Cape Town – Vodacom announced on Monday it would acquire a strategic stake in Kenya’s Safaricom, the company that pioneered mobile money globally, for R34.6 billion.

Vodacom said in a statement the investment in Safaricom, which launched M-Pesa in early 2007, would provide a large level of diversification for Vodacom.

It plans to fund the acquisition of the 34.94 percent stake in Safaricom held by Vodafone Group by issuing new shares. Vodacom said the deal with the the biggest communication company in East and Central Africa would “further enhance Vodacom as a leading African mobile communication company”.

The deal is subject to regulatory and shareholder approvals.

- African News Agency (ANA)