MTN Nigeria To Sell YDF, 60% Of MoMo PSB To MTN Group

MTN Nigeria Communications Plc has announced plans to sell Y’ello Digital Financial Services (YDF) and 60% stake in its fintech subsidiaries, MoMo Payment Service Bank, to MTN Group.

MoMo PSB and Yello Digital Financial Services are the two subsidiaries driving MTN Nigeria’s fintech revenue.

The transaction worth N152.06 billion was disclosed in an FAQ issued to shareholders ahead of the company’s Annual General Meeting scheduled to hold on April 30, 2026.

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

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.

The proposed deal will be presented to shareholders for approval at the AGM, forming 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 Group (via MTN Group Fintech B.V.) will invest N1 52.06 billion for a 60% stake in the Fintech Subsidiaries.

“This will be executed through a combination of primary injection of capital into the Fintech Subsidiaries and a secondary acquisition of shares directly from MTN Nigeria, while MTN Nigeria will ret ain 40%,” the company stated.

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.

The transaction would enable MTN Group to provide additional funding needed to accelerate expansion and capture opportunities in Nigeria’s digital financial services market.

It added that the restructuring would allow MTN Nigeria to focus capital allocation on strengthening its balance sheet, protecting network leadership, improving service quality, driving growth in its connectivity business, and sustaining shareholder returns.

Shareholders’ holdings in the listed telecom company will remain unchanged if the transaction is approved.

Investors will, however, continue to benefit from exposure to the fintech business through MTN Nigeria’s retained 40% interest.

The company also noted that the fintech subsidiaries are currently loss-making, and their separation from MTN Nigeria’s results is expected to improve the company’s overall financial performance.

It added that reduced funding obligations to the fintech units could strengthen free cash flow and support improved or stable dividend payments over the next three to five years.