In the recent FY results, Vodacom disclosed that they have come into an agreement with Safaricom sell the M-Pesa Holding Company Limited.
Vodacom Group announced that it had reached an agreement to sell M-Pesa Holding Company Limited (MPHCL) to Safaricom Plc, an associate entity of the Group, for USD 1. MPHCL is responsible for holding and managing the customer funds of M-Pesa, a mobile money service, on behalf of M-Pesa customers in Kenya.
As of March 31, 2023, the Group’s consolidated financial statements included balances related to MPHCL. These balances comprised of short-term investments totaling €1,247 million and an amount of €1,226 million owed to M-Pesa customers, which were recorded under Other investments and Other creditors, respectively. These figures are reported in accordance with the International Financial Reporting Standards (IFRS). It is important to note that while the Group reports these amounts, MPHCL operates as an independent trustee for M-Pesa customers, solely responsible for administering the trust and holding the funds for the exclusive benefit of the M-Pesa customers. Furthermore, any profits generated by MPHCL, after covering direct costs, are allocated for charitable purposes only.
The transaction is not expected to result in any significant gains or losses. However, its completion is contingent upon obtaining various approvals, which are anticipated to be secured before or during July 2023.
This statement, issued by Vodacom, provides an overview of the agreement to sell MPHCL to Safaricom Plc. The sale reflects Vodacom’s strategic decision regarding the future ownership and management of M-Pesa in Kenya, ensuring continued service and support for M-Pesa customers while adhering to applicable regulatory requirements.