Safaricom 2018 Sustainable Business Report

63 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT In August 2017, Vodafone transferred 35 per cent of its stake in Safaricom to South Africa-based Vodacom. Vodafone is consolidating its African assets under its subsidiary, Vodacom, to reduce costs and to provide the parent company with a streamlined, single-entry point into sub-Saharan Africa. The deal also diversifies the earnings of Vodacom and reduces its reliance on the South African market, which has a 146 per cent mobile penetration rate. The Safaricom share price rose 1.2 per cent at the announcement of the deal, which is considered a vote of confidence in the Safaricom management team and our plans to expand our M-PESA platform to other African markets. As the graph describes, there has been an increase in local corporate shareholders within the ‘free float’, while the decline in retail shareholders has continued. Shareholders by shareholding band Shareholders by Shareholding Band (volume of shares held) FY18 FY17 FY16 FY15 1 to 1,000 370,747 377,352 386,151 397,215 1,001 to 10,000 176,142 182,116 189,837 200,039 10,001 to 100,000 19,804 20,771 22,234 23,954 100,001 to 1,000,000 1,727 1,854 1,955 2,066 1,000,001 to 10,000,000 498 492 465 428 10,000,001 to 100,000,000 175 179 176 161 Over 100,000,000 10 11 11 11 The preceding table shows that 96% of our shareholders hold a maximum of 10,000 shares and are mostly comprised of the local individuals. Free Float Investors by Category Foreign Corporate Local Corporate Local Individual Foreign Individual FY18 FY17 FY16 FY15 Shareholding by Shareholder Band 1 to 1,000 1,001 to 100,000 100,001 to 1,000,000 Over 1,000,001 FY18 FY17 FY16 FY15