April 29, (THEWILL) — MTN Nigeria Communications Plc has unveiled plans to sell a 60 percent stake in its fintech subsidiaries MoMo Payment Service Bank and Y’ello Digital Financial Services to MTN Group in a N152.06 billion deal, as part of a broader restructuring to accelerate growth in digital financial services.
The proposed transaction, to be presented at the company’s Annual General Meeting on April 30, 2026, aligns with MTN Group’s Ambition 2030 strategy to deepen its footprint in fintech and digital infrastructure across Africa.
Under the plan, MTN Group through its fintech arm will acquire majority ownership, while MTN Nigeria retains a 40 percent stake.
According to the company, the deal will be executed through a mix of fresh capital injection into the fintech businesses and a secondary share sale.
Both parties will subsequently transfer their holdings into a new holding company to be registered with the Central Bank of Nigeria, resulting in a shared ownership structure.
An independent valuation by KPMG placed the fintech subsidiaries at N95.5 billion, describing the agreed price as fair and representing a 2.1x premium to their December 2025 carrying valueThey
MTN Nigeria said the move will ease its funding burden, as the fintech units are currently loss-making and require significant capital to scale.
The restructuring is also expected to strengthen free cash flow, support dividend stability, and allow greater focus on its core telecoms business.
Despite the partial divestment, shareholders will retain indirect exposure to the fintech segment through MTN Nigeria’s minority stake, while benefiting from improved financial efficiency.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
