“Debt-Free”: MTN Reaches Agreement With Mastercard to Sell Part of Its Fintech Business Worth $5 Billion
- Africa's Telecommunications giant MTN will be selling part of its fintech business to Mastercard
- Mastercard would then hold a minority stake in the company, which is valued at over $5 billion(N3.8 trillion)
- MTN has big ambitions for its mobile money business unit, MoMo, a CBN-approved Payment Service Bank
MTN Group Ltd. has agreed with Mastercard Inc. to invest in its financial-technology business.
The deal will see Mastercard take hold of a minority stake in the business that MTN values at $5.2 billion.
Source: Facebook
Bloomberg reports that the company disclosed the deal in a statement in its half-year financial performance released on Monday, August 14, 2023.
MTN Chief Executive Officer Ralph Mupita, in the statement, said:
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“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group Fintech, we executed commercial agreements with Mastercard to support the acceleration and growth of our fintech business’s payments and remittance services.
“MTN and Mastercard also signed a memorandum of understanding which provides for a minority investment by Mastercard into Group Fintech based on a total enterprise valuation of about US$5.2 billion for the business on a cash and debt-free basis.
“The signing of the definitive investment agreements is expected to occur in the very near term as we approach the finalization of customary due diligence.
“The closing of the investment will be subject to customary closing conditions.”
MTN Momo
MTN's Mobile Money (MoMO) is one of the Payment Services Banks (PSB) approved by the Central Bank of Nigeria (CBN) to operate in Nigeria.
MoMo is regarded as one of the fastest-growing financial institutions with no bank license and the largest fintech company by customer base in Nigeria.
The volume of transactions in six months of 2023 alone increased by 37% to 8.3 billion, carried out by 61 million active MoMo customers across Africa.
Top 20 highest salary-paying companies in Nigeria
Meanwhile, in another report, the list of the highest salary-paying companies in Nigeria has been revealed, with MTN and UBA included.
The list includes 20 companies from the oil and gas sector, including the financial industry.
The ranking was determined by considering the number of staff employed and the total expenses incurred on staff salaries.
Source: Legit.ng
