Kampala, Uganda | THE INDEPENDENT | MTN Uganda plans to race off its mobile money arm, MTN MoMo, into a separate entity, a circulation that will alter the advise of its industry in no doubt one of its supreme African markets.
In a regulatory filing closing week, the firm acknowledged it “intends to place in power a proposed structural separation and reorganisation of MTN’s wholly owned subsidiary, MTN Cell Money (U) Restricted (‘MTN MoMo’).” The transaction stays discipline to shareholder approval and clearance from regulators.
Beneath the proposal, MTN MoMo would quit to be a mumble subsidiary of MTN Uganda and as an different be transferred to a newly created firm. Ownership of that firm would be shared between MTN Community Fintech Holdings B.V., which oversees MTN’s global fintech technique, and a believe representing MTN Uganda’s minority shareholders, collectively with each institutional and retail traders.
MTN Uganda has called an unparalleled fundamental assembly for July 2, at which shareholders will vote on the opinion. A circular issued on June 11 presents info of the proposed transaction and the necessities that must be met earlier than it might perhaps presumably proceed.
The race-off underscores the rising significance of mobile money to MTN Uganda’s overall efficiency. In its latest financial disclosures, MTN acknowledged MTN MoMo processed more than Shs 97 trillion ($25 billion) in transactions closing 365 days, serving over 10 million energetic users and generating practically 30% of the firm’s total service income.
Telecom operators worldwide obtain more and more separated their financial companies and products items to free up shareholder value and deal with unusual regulatory requirements that demand particular divisions between telecom and financial companies and products operations.
“The mobile money and financial technology industry on the second lunge by MTN MoMo will be operated by a brand unusual firm,” the filing acknowledged, adding that the possession building will be finalised once the reorganisation is total.
MTN Uganda acknowledged the opinion complies with the Uganda Capital Markets (Corporate Governance) Laws 2025 and the Uganda Securities Alternate Itemizing Tips 2025. The bourse granted permission for the announcement however infamous that its approval would not indicate an endorsement of the transaction’s deserves.
