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MTN Nigeria wins shareholder approval to offload fintech units to parent

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MTN Nigeria wins shareholder approval to offload fintech units to parent

MTN Nigeria has secured shareholder approval to sell its stakes in fintech subsidiaries MoMo Payment Service Bank and Yellow Digital Financial Services to parent company MTN Group.

Local media reported that shareholders met on April 30 and passed a resolution authorising the transfer of shares to the parent company. The move is aimed at easing the burden of capital investment while allowing MTN Nigeria to focus on its core telecoms operations.

Under the deal, MTN Group will invest around NGN152 billion ($110 million) to acquire a 60% controlling stake, with MTN Nigeria retaining the remaining 40%. The operator said the fintech businesses have strong potential, but the level of capital required to scale them was considered steep.

The transaction is expected to close by December 31, subject to regulatory approvals.



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