Safaricom PLC announced on Wednesday it has officially completed the acquisition of the entire issued share capital of M-PESA Holdings Co. Limited from Vodacom International Holdings BV. This marks a significant milestone in the telecommunications and mobile financial services industry, as Safaricom now has full control of M-Pesa, its flagship and iconic product in the regional market.
The acquisition, which was initiated on 17th April, 2023, saw Safaricom enter into a share purchase agreement with Vodafone International Holdings BV for the transfer of 100% shareholding in MPESA Holdings Limited from Vodafone BV to Safaricom.
“The Board of Directors of Safaricom PLC is pleased to notify the public of the completion of the acquisition by Safaricom of the entire issued share capital of M-Pesa Holding Co. Limited from Vodafone International Holdings BV,” the statement read in part.
“On 17th April 2023, Safaricom entered into a share purchase agreement with Vodafone International Holdings for the transfer of one hundred per cent (100%) shareholding in M-PESA Holding Co. Limited (M-Pesa Holding) from Vodafone BV to Safaricom.”
M-PESA Holdings plays a pivotal role as the corporate trustee responsible for holding M-PESA customer funds under the M-PESA trust arrangement, as mandated by the National Payment System Regulations of 2014, a statement from the Safaricom press release said. This acquisition ensures that Safaricom has complete control over the stewardship of these funds.
The successful completion of this transaction hinged on meeting various conditions typical for such complex deals, including securing approval from shareholders and the necessary regulatory authorities.
All conditions have been duly satisfied, Safaricom said, and all required regulatory approvals have been obtained, allowing Safaricom to assume full ownership of MPESA Holdings.
This announcement, according to Safaricom, is in compliance with paragraph G.06 of the fifth schedule of the capital markets (securities) regulations of 2002 in Kenya and serves to inform the public of the successful conclusion of this momentous transaction.
Despite this transition, M-PESA will continue to function as the corporate trustee of the M-PESA trust funds, safeguarding the interests of its customers.
M-Pesa was established on March 6, 2007, by Vodafone’s Kenyan associate, Safaricom, and is Africa’s leading mobile money present in the Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Lesotho, Mozambique and Tanzania.
Since its inception, M-Pesa has evolved from a person-to-person cash transfer platform to offer payments and credit.