MTN Nigeria Communications Plc has announced plans to sell a 60% stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services (YDF), to MTN Group in a N152.06 billion transaction.
This was disclosed in an FAQ issued to shareholders ahead of the company’s Annual General Meeting scheduled to hold on April 30, 2026.
Details of the proposed deal, which will be presented to shareholders for approval at the AGM, forms part of MTN Group’s Ambition 2030 strategy to become Africa’s leading connectivity, fintech, and digital infrastructure platform business.
Under the arrangement, MTN Group, through MTN Group Fintech B.V., will acquire majority ownership in the two fintech subsidiaries, while MTN Nigeria will retain a 40% stake.
MTN Nigeria said 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, creating a shared ownership structure of 60% for MTN Group Fintech and 40% for MTN Nigeria.
The company disclosed that KPMG issued an independent fairness opinion on the agreed valuation of N95.5 billion, describing it as fair and reasonable.
According to MTN Nigeria, the valuation represents a 2.1x premium to the fintech companies’ carrying value as of December 2025.
MTN Nigeria said it has fully funded the fintech subsidiaries to date, but their continued growth requires substantial financial investment.
