Vodacom to recoup Safaricom upfront dividend in three years

A Vodacom shop in Johannesburg, South Africa. 

Photo credit: Pool

Vodacom Group expects the advance dividend it gave the government as part of the Safaricom share sale transaction to be repaid within two or three years, signalling expectations that the telco will increase the size of its cash distribution to shareholders in the short term.

In a conference call with analysts, the South African firm said that it considered expected dividend flows over three years in order to arrive at the size of the facility to lend to the government, while also factoring in a return of about 16.5 percent.

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