MTN To Sell 60% Fintech Stake For N152bn

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 (YDF), in a N152.06bn transaction involving its parent company, MTN Group.

The disclosure was contained in an FAQ issued to shareholders ahead of the company’s Annual General Meeting scheduled for April 30, 2026, where the deal will be presented for approval.

According to the proposal, MTN Group, through MTN Group Fintech B.V., will acquire majority ownership in the two subsidiaries, while MTN Nigeria will retain a 40 per cent stake.

The transaction forms part of MTN Group’s broader “Ambition 2030” strategy aimed at positioning the company as a leading connectivity, fintech, and digital infrastructure platform across Africa.

MTN Nigeria stated that the deal will be executed through a combination of fresh capital injection into the fintech businesses and a secondary acquisition of shares from MTN Nigeria.

The assets will subsequently be transferred into a new holding company to be registered with the Central Bank of Nigeria, establishing a 60:40 ownership structure between MTN Group Fintech and MTN Nigeria.

The company added that KPMG issued an independent fairness opinion, valuing the transaction at N95.5bn and describing it as fair and reasonable. It also noted that the valuation represents a 2.1 times premium to the fintech units’ carrying value as of December 2025.

MTN Nigeria explained that while it has fully funded the fintech subsidiaries to date, their continued expansion requires significant capital. It said the restructuring would enable MTN Group to inject additional funding to accelerate growth in Nigeria’s digital financial services market.

The company further stated that the move would allow Mtn Nigeria to focus on strengthening its balance sheet, improving service quality, enhancing its core connectivity business, and sustaining shareholder returns.

It assured shareholders that their holdings in Mtn Nigeria will remain unchanged if the transaction is approved, while investors will still retain indirect exposure to the fintech business through the company’s 40 per cent stake.

MTN also noted that the fintech subsidiaries are currently loss-making, adding that separating them from its core operations is expected to improve overall financial performance and free cash flow, potentially supporting stable dividends in the medium term.

If approved, the company said it will proceed with all required regulatory and legal processes, with completion targeted on or before December 31, 2026, subject to necessary approvals.