LONDON, July 2, 2026, 12:08 BST
- Vodafone was last at 98.90 pence, up 0.43%. Still, the shares have dropped 6.4% since June 26.
- FTSE 100 climbed 0.48% to close at 10,528.86. Vodafone now trails the index by roughly 6.6 percentage points since June 26.
- Vodacom finished its effective 20% buy in Safaricom, raising its total stake to roughly 55% and bringing Safaricom fully into Vodacom’s consolidated numbers.
Vodafone Group Public Limited Company (LON:VOD) ticked up 0.43% to 98.90 pence in London on Thursday. The stock had dropped 6.8% in the last three sessions, sliding under the 100p mark. Shares are now down 6.4% since the June 26 close.
Vodafone’s shares lagged the FTSE 100. While the index rose 0.48% to 10,528.86 by 11:34 BST, just above its June 26 finish, Vodafone trailed the index by around 6.6 percentage points in the same period.
| Market tape | June 26 | July 2 latest | Change |
|---|---|---|---|
| Vodafone (LON:VOD) | 105.65p | 98.90p | -6.4% |
| FTSE 100 | 10,508.02 | 10,528.86 | +0.2% |
The new deal isn’t about the half-point bounce. Vodafone said on June 30 its African unit Vodacom Group Limited JSE:VOD wrapped up buying an effective 20% of Safaricom Plc (NSEKE:SCOM), pushing Vodacom’s stake to 55%. Both Vodacom and Vodafone will now fully consolidate Safaricom, Vodafone said.
Vodacom said it wrapped up the deal after Kenya’s Court of Appeal put a hold on a conservatory order June 26, and after all closing conditions were cleared. The transaction came in at $2.1 billion, or R35 billion, done at KES34 per Safaricom share.
| Safaricom deal item | Data |
|---|---|
| Effective stake bought | 20% |
| Vodacom stake after close | near 55% |
| Deal value | $2.1 bln / R35 bln |
| Safaricom FY26 EBITDA | R29 bln |
| Vodacom FY26 EBITDA | R63 bln |
| Safaricom EBITDA as share of Vodacom FY26 EBITDA | about 46% |
The EBITDA numbers matter for Vodafone investors. Safaricom’s R29 billion in FY26 EBITDA stands at about 46% of Vodacom’s own FY26 figure, so once consolidated, Africa’s share in the group grows on the books. Vodacom reported fintech was 44% of Safaricom’s Kenya revenue, and Safaricom counted around 14 million customers in Ethiopia.
Vodacom CEO Shameel Joosub said in the statement, “Acquiring majority ownership in Safaricom strengthens our position as a market leader.” He said the deal will give Vodacom opportunities to push digital and financial inclusion in Kenya and Ethiopia. Vodacom
Eric Musau, head of research at Standard Investment Bank in Nairobi, told Reuters last year after the deal was struck: “Vodacom is paying a control premium.” Vodacom paid KES34 a share, topping Safaricom’s closing price of KES28.20 at the time, according to Reuters. Reuters
Leverage is the issue holding back a clean rerating for the stock. Vodafone in May agreed to buy CK Hutchison Holdings’ (HKG:0001) 49% stake in VodafoneThree for 4.3 billion pounds, which gives it full control of the UK mobile operator. Vodafone says the deal values VodafoneThree at 13.85 billion pounds on an enterprise basis and will increase Vodafone’s pro forma net leverage by 0.4 times.
Vodafone finished FY26 with net debt at 25.4 billion euros and group leverage at 2.2x. Adjusted free cash flow came in at 2.6 billion euros. The company lifted its FY26 dividend by 2.5% to 4.6125 euro cents a share and said it returned 4 billion euros via buybacks since May 2024.
| Investor read-through | Safaricom | VodafoneThree |
|---|---|---|
| Ownership change | Vodacom stake set for about 55% | Vodafone will take 100% after sign-off |
| Accounting effect | Goes to full consolidation | Vodafone takes full hold of the UK business |
| Main price tag | $2.1 bln / R35 bln | £4.3 bln in cash |
| Debt effect flagged | No number at Vodafone group disclosed | Pro forma net leverage up +0.4x |
| Next dated item | Vodacom update eyed for around July 27 | Deal wraps up H2 2026, expected |
“We believe now is the right time to take full ownership of VodafoneThree,” said Vodafone CEO Margherita Della Valle after the UK deal was announced. Reuters said the buyout is expected to take Vodafone’s net debt ratio up to roughly 2.6 times, before any VodafoneZiggo contribution. Reuters
Vodafone’s latest annual report lays out the gains and the pressure. Group organic service revenue climbed 5.4% in FY26. Adjusted EBITDAaL landed at 11.35 billion euros. Adjusted free cash flow hit 2.62 billion euros. Net debt, though, added roughly 3.0 billion euros from FY25.
Vodacom plans to give new medium-term targets with its first-quarter results due around July 27. The company said it will update the market at that time.
