Who sold MPesa to Safaricom in Kenya? Safaricom PLC recently initiated a plan to acquire M-Pesa Holding Company Limited from its major shareholder Vodafone Group PLC.
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The Nairobi Securities Exchange disclosed that Safaricom will pay Vodafone at least $1 billion in a deal to facilitate regulatory approvals.
Who Sold MPesa to Safaricom in Kenya?
Investors say that the acquisition will greatly boost income flow within Safaricom PLC.
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The Vodafone press release reads as follows;
“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 USD 1.”Vodafone PLC.
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In another statement, the British multinational company had this to say;
“No material gain 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 PLC.
Vodafone says M-Pesa Holding had short-term investments of Ksh.186.2 billion as of March 31, 2023.
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It also held M-Pesa customer funds amounting to Ksh. 183.1 billion on the same date.
“Balances included in the group’s consolidated financial statements for M-Pesa Holding on 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.”Vodafone PLC.
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The multinational company added that M-Pesa Holding profits are currently donated for use for public charitable purposes only after defraying direct costs.
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It remains to be seen whether the same policy on the use of profits will be retained under the control of Safaricom PLC.
Vodafone PLC allegedly sold MPesa to Safaricom PLC in a move to minimize complexities for a competitive advantage in its current market.