MTN Nigeria fintech stake sale sees company plan to sell 60% of MoMo and Y’ello Digital for N152bn under strategic restructuring deal

MTN Nigeria Communications Plc on Wednesday announced plans to sell a 60 per cent stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services, in a N152.06 billion transaction involving its parent company, MTN Group.

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Sale of MTN Nigeria Fintech Stake Announced proposal was disclosed in an information document issued to shareholders ahead of the company’s Annual General Meeting scheduled for April 30, 2026, where approval for the deal will be sought.

Under the arrangement, MTN Group, through MTN Group Fintech B.V., will assume majority ownership of the subsidiaries, while MTN Nigeria retains a 40 per cent equity interest.

The transaction forms part of MTN Group’s long-term “Ambition 2030” strategy, which seeks to strengthen its position across connectivity, digital finance and infrastructure services in Africa.

According to the company, the deal will be executed through a combination of fresh capital injection into the fintech businesses and a secondary share acquisition from MTN Nigeria.

The assets will later be consolidated under a new holding structure to be registered with the Central Bank of Nigeria, establishing a 60:40 ownership model between MTN Group Fintech and MTN Nigeria.

An independent fairness opinion issued by KPMG valued the transaction at N95.5 billion, describing it as fair and reasonable, and indicating a 2.1 times premium over the subsidiaries’ carrying value as of December 2025.

MTN Nigeria stated that the restructuring is necessary due to the capital-intensive nature of its fintech expansion, adding that the new structure will allow increased investment from MTN Group to support growth in Nigeria’s digital financial services space.

The company also said the move will enable it to strengthen its core telecom operations, improve service delivery, and enhance shareholder returns, while maintaining indirect exposure to fintech through its remaining stake.

It further noted that the subsidiaries are currently operating at a loss, adding that the separation is expected to improve overall financial performance and boost free cash flow in the medium term.

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If approved, completion of the transaction is expected by December 31, 2026, subject to regulatory and legal approvals.