Analysts say Safaricom sale based on outdated valuation

 Safaricom PLC headquarters in Westlands, Nairobi.

Photo credit: File | Nation Media Group

Analysts have raised concerns over the valuation method used to determine the Sh34 per share price at which the government is selling a 15 percent stake in Safaricom to South Africa's Vodacom Group Limited, warning the deal could be undervalued.

They further warn that the transaction will give the multinational a controlling 55 percent stake in what could limit the government's influence in the telco's strategic direction.

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