Tanzania tycoons buy 10m Safaricom shares

kgoldman

Tanzanian billionaires Aunali and Sajjad Rajabali have bought 10 million shares of Safaricom worth Sh295 million, becoming the third-largest individual investors in the telecommunications firm.

The Rajabalis are now ranked after billionaire investor John Kibunga Kimani who has 11.8 million shares worth Sh348 million and Ramaben Patel — the top individual investor with 12.7 million shares currently valued at about Sh374 million.

The duo has been accumulating shares in NSE-listed firms over the past two years, with their cumulative investment standing at more than Sh1.8 billion.

Safaricom is the most profitable company in the country, having dominated the various segments in the telecommunications market including voice, mobile data and mobile cash transfers.

Analysts say the attractiveness of the telco going forward will depend on the scope and intensity of proposed regulations which arose after fears that the company has cornered the market, leaving its rivals in devastating losses.

“The numbers reported suggest that the company still makes a compelling case to buy, on price dips for the long term investor. Regulation, especially asymmetrical tariffs and restrictions on non-replicable offerings may be a key concern in coming months,” Standard Investment Bank said in a statement.

“We think it is inevitable that a material regulatory decision will be made despite protests given the current industry structure. The magnitude, however, remains uncertain. Certain measures may also take longer to implement.”