In brief
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MTN MoMo is one of the most important financial services in Ghana. It is the everyday tool for sending money, saving small amounts, paying bills, and running businesses. Now, MTN Ghana is restructuring the MoMo business to stand as its own fintech company: MobileMoney Fintech Ltd. If you are a shareholder in MTNGH (or thinking about becoming one), this is a development worth paying attention to, especially with the public memo, prospectus, and EGM invitation circulating. Many shareholders may be unsure about what is being requested of them, so here is the clear explanation. What’s Happening? MTN Ghana is reorganising the MoMo business into a separate entity. Until now, the MoMo business operated under MTN Ghana through MobileMoney Ltd (MML), essentially sitting under the MTN umbrella. Under new Bank of Ghana regulations (Payment Systems and Services Act, Act 987), MoMo must stand as an independent, well-capitalised fintech company.
To do this: ● The MoMo business will be moved from MML into a newly incorporated company: MobileMoney Fintech Ltd. This is referred to as ‘the merger’ ● MTN Ghana is convening an Extraordinary General Meeting (EGM) to seek shareholder approval for this merger ● Once completed, the old MML will be dissolved and the new fintech company, Mobile Money Fintech Ltd. will apply for a licence directly from the Bank of Ghana
These changes are not optional; they are regulatory requirements and must be completed by 31 December 2025.
Why You Should Care as a Shareholder If you own MTN Ghana shares, this separation affects you in a few ways. 1. Your vote is required This transaction needs shareholder approval for the merger at the EGM. Without the merger, MTN risks non compliance, and the MoMo licence could be suspended. This would directly affect MoMo revenues, and by extension, your dividends. 2. It represents a major structural shift All MoMo assets, liabilities and employees move into the new fintech company. This is not a breakup. It is a reorganisation to meet BoG requirements. 3. Your economic benefits stay the same A special Fintech Trust will hold shares in MobileMoney Fintech Ltd on behalf of minority shareholders. This means: ● You maintain the same proportional exposure to MoMo earnings ● Your share of MoMo’s growth is unchanged ● You gain exposure to a standalone fintech that could unlock more value in the future And in Case You Are Worried, Here Are the Key Implications.
Even after the restructuring, shareholders maintain the same ownership level of MoMo through the Fintech Trust.
It simply places MoMo in a regulatory compliant structure, securing the business’s continuity.
A listing of MobileMoney Fintech Ltd on the Ghana Stock Exchange is planned within 3 to 5 years, which could unlock additional value.
We hope this has helped you understand the communications better. Attached are additional FAQs with more information, with further detailed documentation available at the https://momofintechegm.com/ |