MTN Nigeria Communications Plc has announced plans to sell a 60% stake in its fintech subsidiaries, MoMo Payment Service Bank (MoMo PSB) and Y’ello Digital Financial Services (YDF) to the MTN Group.
This was disclosed in an FAQ issued to shareholders ahead of the company’s Annual General Meeting (AGM) scheduled for April 30, 2026.
The proposed deal valued at ₦152.06 billion formspart of MTN Group’s Ambition 2030 strategy to become Africa’s leading connectivity, fintech, and digital infrastructure platform.
Under the arrangement, MTN Group, operating through MTN Group Fintech B.V will acquire majority ownership of the two fintech subsidiaries, while MTN Nigeria will retain a 40% stake.
MTN Nigeria stated that the transaction will be executed through a combination of fresh capital injection into the fintech subsidiaries and a secondary acquisition of shares directly from MTN Nigeria.
Following the transaction, both parties will transfer their stakes into a new holding company to be registered with the Central Bank of Nigeria (CBN).
KPMG issued an independent fairness opinion on the agreed valuation of ₦95.5 billion describing it as fair and reasonable.
This valuation represents a 2.1x premium over the fintech companies’ carrying value as of December 2025.
While MTN Nigeria has fully funded the subsidiaries to date, their continued growth requires substantial financial investment that the MTN Group is better positioned to provide.
MTN Nigeria assured investors that their holdings in the listed telecommunications company will remain unchanged.
Investors will continue to benefit from the fintech business’s potential through the retained 40% interest. Additionally, reduced funding obligations to the fintech units could strengthen free cash flow, potentially supporting more stable dividend payments over the next three to five years.
If approved at the AGM, MTN Nigeria aims to complete the required regulatory and legal processes by December 31, 2026.