MTN Nigeria Communications Plc has announced plans to sell a 60 per cent stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services, in a transaction valued at ₦152.06 billion involving its parent company, MTN Group.
The proposal was disclosed in a shareholder FAQ ahead of the company’s Annual General Meeting scheduled for April 30, 2026, where approval for the transaction will be sought.
Under the arrangement, MTN Group, through MTN Group Fintech B.V., will acquire majority ownership of the two subsidiaries, while MTN Nigeria will retain a 40 per cent stake.
According to the company, the transaction aligns with MTN Group’s “Ambition 2030” strategy, which seeks to position the business as a leading provider of connectivity, fintech, and digital infrastructure services across Africa.
MTN Nigeria said the deal will involve a mix of fresh capital injection into the fintech businesses and a secondary acquisition of shares from MTN Nigeria.
The assets will then be transferred into a new holding company to be registered with the Central Bank of Nigeria, creating a 60:40 ownership split between MTN Group Fintech and MTN Nigeria.
The telecoms giant also noted that KPMG issued an independent fairness opinion, valuing the transaction at ₦95.5 billion and describing it as fair and reasonable.
MTN Nigeria explained that while it has fully funded the fintech subsidiaries so far, future expansion will require significant additional capital. It said the restructuring would allow the parent company to inject more funding and accelerate growth in Nigeria’s digital financial services market.
The company added that the move would help strengthen its balance sheet, improve service delivery, enhance its core telecoms business, and sustain shareholder returns.
MTN further disclosed that the fintech subsidiaries are currently loss-making, and separating them from core operations is expected to improve financial performance and free cash flow, potentially supporting stable dividend payments in the medium term.
If shareholders approve the proposal, MTN said all regulatory and legal processes would follow, with completion targeted on or before December 31, 2026.
