Safaricom will buy M-Pesa Holding Company Limited (MPHCL) from Vodafone Group plc. However, the transaction is subject to regulatory approvals.
MPHCL holds M-Pesa customer funds in trust for the benefit of M-Pesa customers in Kenya.
“On 17 April 2023, the group entered into an agreement to sell M-Pesa Holding Company Limited (MPHCL) to Safaricom Plc, an associate entity of the group, for $1 (Ksh137 at current exchange rates),” Vodafone said on Tuesday.
“No material gains or loss is expected to arise on disposal. Completion of this transaction is subject to various approvals which are expected to be obtained before or during July 2023,” Vodafone added.
The deal had been initiated in April.
“Balances included in the Group’s consolidated financial statements for MPHCL at 31 March 2023 include short-term investments of €1,247 million and €1,226 million, due to M-Pesa customers, recorded within other investments and other creditors, respectively.”
“These sums are shown in the group’s consolidated financial statements in accordance with IFRS, but MPHCL acts as the independent trustee for M-Pesa customers, independently administering the trust and holding all funds from the M-Pesa customers on trust for the benefit of M-Pesa customers.”