Nairobi, Dec. 8 -- Standard Investment Bank (SIB) says the National Treasury is selling its 15 percent stake in Safaricom at a discount of 15.4 percent, based on comparisons of recent transactions of similar assets and the telco's expected future earnings.

The transaction announced last week is priced at Sh34 per share where the buyer -South Africa's Vodacom Group will pay the government Sh204.3 billion for the six billion shares.

The investment bank however sees the fair value of the company at Sh40.19, signifying a higher premium to the prevailing market price and Vodacom's offer price.

Read:Vodacom eyes State stake in Safaricom

"The transaction price of Sh34 is a premium of 20.6 percent to the current market price but a discount of...