Safaricom PLC announced on Wednesday that it has officially completed the acquisition of the entire issued share capital of M-PESA Holdings Co. Limited from Vodacom International Holdings BV, marking a significant milestone in the telecommunications and mobile financial services industry.
The acquisition, which was initiated on April 17th, 2023, saw Safaricom enter into a share purchase agreement with Vodafone International Holdings BV for the transfer of a hundred percent shareholding in MPESA Holdings Limited from Vodafone BV to Safaricom. This strategic move now places Safaricom in full ownership of MPESA, one of the most iconic mobile money platforms in Kenya and the entire East African territory.
M-PESA Holdings plays a pivotal role as the corporate trustee responsible for holding MPESA 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, 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, MPESA will continue to function as the corporate trustee of the MPESA trust funds, safeguarding the interests of its customers.