Safaricom has appointed two senior Vodacom executives as non-executive directors, following Vodacom’s acquisition of a majority stake in Safaricom.
Vodacom Group’s Chief Executive Officer for Fintech, Mariam Cassim, and Chief Officer for Human Resources, Matimba Mbungela, have been appointed to Safaricom’s board with effect from August 13, the company said in a public announcement.
At the same time, James Ludlow and Dr (Eng.) John Kipngetich Mosonik resigned as non-executive directors, also effective August 13.
Cassim has extensive experience in corporate finance, deal structuring, mergers and acquisitions, debt restructuring and commercial management.
She has held senior positions within Vodacom Group since 2017, including roles in innovation, business development and executive leadership.
Matima Mbungela has been Vodacom Group’s Chief Officer for Human Resources since 2014, having previously held several senior human resources positions within the group since 2003.
The changes come weeks after Vodacom increased its stake in Safaricom to 55 per cent, giving the South African telecommunications group control of Kenya’s largest listed company.
The transaction, which was completed on June 30, saw Vodacom acquire an additional 20 per cent stake in Safaricom, 15 per cent stake from the Kenyan government and a further 5 per cent from Vodafone Group.
The government’s stake in Safaricom fell to 20 per cent, with the remaining 25 per cent held by public investors.
The board appointments are the first changes done following the change in Safaricom’s ownership structure and comes after shareholders approved amendments to the company’s Articles of Association at the July 31 annual general meeting.
The changes to the Articles of Association aligned Safaricom’s governance structure with the new ownership arrangement, giving Vodafone Kenya Limited (VKL), which is wholly owned by Vodacom, greater influence over the board and executive leadership for as long as it remains the majority shareholder.
Under the revised arrangement, VKL can nominate one director for every complete 10 per cent of Safaricom it owns.
At its current 55 per cent holding, VKL has the right to nominate five directors, while the government, with a 20 per cent stake, retains the right to nominate two.
Following the appointments of Mariam Cassim and Matimba Mbungela, Vodacom executives now occupy 5 board seats at Safaricom.
The changes to the Articles of Association also gave VKL the right to nominate Safaricom’s chief executive for appointment by the board for as long as it holds more than 50 per cent of the company.
Despite the transfer of control, Vodacom must still consult the government on certain strategic decisions, including material changes to the Safaricom brand and expansion into markets outside Kenya and Ethiopia.
