Vodacom makes A2X listing, Safaricom acquires M-Pesa Holding

Telecommunications operator Vodacom Group will officially trade as a secondary listing on the A2X stock exchange.

Moreover, the Group said it will retain its primary listing on the Johannesburg Stock Exchange (JSE).

Vodacom will officially trade at market open, and its ordinary shares can be traded on A2X on Oct. 26, 2023.

According to the telco, the secondary listing on A2X complements the company's primary listing by providing its investors with an alternative trading venue.

"We are pleased that the secondary listing on A2X has been approved. As we grow and have recently accelerated our growth profile by completing the acquisition of a 55% stake in Vodafone Egypt, we are delighted to be able to give our investors an alternative venue to trade and trust they will find this beneficial," said Vodacom Group CFO Raisibe Morathi.

A2X is a licensed stock exchange authorized to provide a secondary trading venue for companies. It is regulated by the Financial Sector Conduct Authority and Prudential Authority of the South African Reserve Bank in terms of the Financial Markets Act 19 of 2012.

"We look forward to demonstrating the benefits that a listing on A2X will bring to both Vodacom Group and its investors," said A2X CEO Kevin Brady.

The Vodacom Group operates in the Democratic Republic of Congo, Egypt, Lesotho, Mozambique, Tanzania, and South Africa, as well as in Kenya and Ethiopia through a 35% shareholding in Safaricom.

Safaricom has fully acquired M-Pesa Holding

Kenyan telecom operator Safaricom has announced its acquisition of the entire issued share capital of M-Pesa Holding Company Limited (MPHCL).

According to a statement, Safaricom said it reached an agreement with its parent company, Vodafone International Holdings BV, on April 17, 2023, for it to acquire Vodafone's entire 100% stake in M-Pesa Holding Company Ltd.

M-Pesa Holdings is different from the M-Pesa service Safaricom offers. It is a corporate trustee that holds all deposits of the M-Pesa service and invests them on behalf of the customers. (Source: WorldRemit Comms on Flickr via CC 2.0)

"Completion of the transaction was subject to the satisfaction of conditions that are customary for transactions of this nature, including obtaining approval from shareholders and relevant regulators, all of which have been duly satisfied and all regulatory approvals obtained,” said Safaricom's acting secretary, Linda Wambani.

M-Pesa Holdings is different from the M-Pesa service Safaricom offers. It is a corporate trustee that holds all deposits of the M-Pesa service and invests them for the benefit of the customers.

The Kenyan telco's board of directors said it had met all required conditions for the transaction, including obtaining approval from shareholders and relevant regulators.

Furthermore, the board noted that M-Pesa Holding will continue to act as the corporate trustee of the M-Pesa trust funds upon completion of the transaction.

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*Top image is of Vodacom Group CEO Shameel Joosub. (Source: Vodacom.)

— Matshepo Sehloho, Associate Editor, Connecting Africa