Is your 30 millionth of 60 percent stake in Safaricom safe?
By MUNGAI KIHANYA
The Sunday Nation
Nairobi,
19 August 2007
The ownership of Safaricom Limited has perplexed many readers... and
MPs. On the one hand, the Government (and the company’s CEO) insist that
there are two shareholders, namely Telkom Kenya Limited with 60 percent
and Vodafone Kenya Limited with 40 percent. That (60
+
40) makes 100 percent.
On the other hand, Vodafone PLC says that it owns 35 percent and the
remaining 5 percent is owned by a company called Mobitelea Ventures Ltd.
So who is telling the truth?
Well, all of them are truthful! There is no question as to how much
Telkom Kenya owns in Safaricom – it is 60 percent. The problem appears
to be on the remaining 40 percent.
This portion is owned by a Kenyan registered company called Vodafone
Kenya Limited. Thus the Government and Safaricom’s CEO are correct in
insisting that there are only two shareholders. But why then does
Vodafone PLC say that it owns only 35 percent?
This arises from the ownership of Vodafone Kenya Ltd.
This Kenyan registered private
company is owned by two foreigners – Vodafone PLC of the UK and
Mobitelea Ventures Ltd of
Guernsey (an autonomous island nation located off the coast of France).
Vodafone PLC owns 87.5 percent of Vodafone Kenya Ltd while Mobitelea
owns the remaining 12.5 percent. Since Vodafone Kenya Ltd owns 40
percent of Safaricom Ltd, the “beneficial ownership” that Vodafone PLC
has in Safaricom is 35 percent (40 x 0.875). In the same way, the
“beneficial ownership” of Mobitelea in Safaricom is 5 percent (40 x
0.125).
However, Vodafone PLC and Mobitelea do NOT own any shares in Safaricom.
Similarly, I,
Mungai
Kihanya, don’t own any shares in Safaricom, but I have a small
“beneficial ownership” of about 30,000,000th of 60 percent…just like any
other Kenyan.
But do we (Kenyans) need to know the identity of the owners of
Mobitelea? Or how Mobitelea acquired ownership in Vodafone Kenya Ltd? I
would only be concerned if it had taken up shares in Safaricom.
Otherwise I am not interested. All I’m worried about is my 30,000,000th
of 60 percent share in Safaricom!
Nevertheless, it turns out that Mobitelea Ventures Ltd is owned by two
nominee companies that hold the shares on behalf of undisclosed parties.
I am sure that there are also some nominees who hold Vodafone PLC shares
for anonymous entities. It is normal in business.
Finally, the planned initial public offer of Safaricom shares will see
25 percent of the company sold to the public. It is not 25 percent of
Telkom Kenya’s share. That would translate to only 15 percent of
Safaricom! After all 25 percent of 60 percent is 15 percent.
The email claiming that planet Mars will be so close to Earth that it
will look like a second moon in the sky is back. This spectacle is
supposed to occur on 27th August. But, of course, as my math teacher
used to say, this is complete, utter, absolute, diabolical nonsense!
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