MTN Nigeria to Sell 60% Fintech Stake for N152bn

MTN Nigeria to Sell 60% Fintech Stake for N152bn

MTN Nigeria Communications Plc has announced plans to sell a 60 percent stake in its fintech subsidiaries—MoMo Payment Service Bank and Y’ello Digital Financial Services (YDFS)—in a N152.06 billion transaction involving its parent company, MTN Group. The proposal is expected to be presented to shareholders for approval at the company’s Annual General Meeting scheduled for April 30, 2026.

The disclosure was contained in an information document and Frequently Asked Questions (FAQ) circulated to shareholders ahead of the meeting, outlining the structure and purpose of the transaction.

Under the arrangement, MTN Group, through MTN Group Fintech B.V., will acquire majority ownership of the fintech subsidiaries, while MTN Nigeria will retain a 40 percent stake. The deal is part of MTN Group’s broader “Ambition 2030” strategy aimed at strengthening its position in connectivity, fintech, and digital infrastructure across Africa.

MTN Nigeria explained that the transaction 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 then 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.

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The company stated that an independent fairness opinion conducted by KPMG valued the transaction at N95.5 billion, describing it as fair and reasonable. The valuation also represents a 2.1 times premium over the fintech units’ carrying value as of December 2025.

MTN Nigeria noted that the fintech subsidiaries, while fully funded by the company so far, now require additional capital to support their expansion in Nigeria’s fast-growing digital financial services sector. It said the restructuring will enable MTN Group to inject further investment to accelerate growth and improve service delivery.

The company added that the move is expected to allow MTN Nigeria to strengthen its balance sheet, focus on its core connectivity business, enhance service quality, and sustain shareholder returns over time.

Shareholders were assured that their existing holdings in MTN Nigeria will remain unchanged if the transaction is approved, while they will still retain indirect exposure to the fintech business through the company’s 40 percent stake.

MTN also disclosed that the fintech subsidiaries are currently operating at a loss. However, it said separating them from core telecom operations is expected to improve overall financial performance, enhance cash flow, and support potential dividend stability in the medium term.

If approved at the AGM, MTN Nigeria said it will proceed with all required regulatory and legal processes, including approvals from the Central Bank of Nigeria and other relevant authorities. The company expects the transaction to be completed on or before December 31, 2026.

MTN Nigeria to Sell 60% Fintech Stake for N152bn