“This Transaction is Crucial”: MTN Buys Bank, Details of Transaction Emerge
- Following an expenditure involving millions of dollar, MTN Nigeria has acquired a 7.17% minority interest in Mobile Money Payment Service Bank
- The telecommunications company announced that the deal was finalised and that MTN Nigeria now fully owns MoMo PSB
- The telecom company was able to commence operations in 2022 after receiving the final permission for its banking license
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
MTN Nigeria has successfully purchased a 7.17% minority stake in Mobile Money Payment Service Bank (MoMo PSB), which was formerly owned by Acxani Capital.
Source: UGC
The telecom business announced on the Nigerian Stock Exchange that it had completed the transaction and that MTN Nigeria now owns MoMo PSB in its entirety.
In a notice on the NGX, it stated:
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“Management believes this transaction will simplify and strengthen MoMo PSB operations, which is crucial in achieving its growth ambitions.”
Compared to conventional person-to-person mobile money transfers, MTN Nigeria's Payment Services Bank offers a wider range of mobile financial services, such as bill payment and loans.
It is anticipated that full ownership of the MoMo PSB in the most lucrative market for MTN Group will improve group operations.
Nigeria continues to be MTN's biggest market and the source of much of the company's revenue.
The Guardian reported that Acxani proposed the disposal of their 20% stake in MoMo in May 2024, however, the stake was diluted to 7.17%.
It cited a a report which states that MTN Nigeria Acxani Capital came to a N6.95 billion agreement for the 7.17%.
The purchase led to N12.97 billion decline in MTN’s “other revenue”, as the group spent N16.35 billion on the acquisition of the minority stake, while it acquired assets worth N3.38 billion from Acxani Capital.
Acxani Capital is owned by Munir Ja’afaru, a former director in the defunct NITEL as well a prince in the Zazzau Emirate
ALTON denies approving hike in call, data tariffs
Legit.ng previously reported that Gbenga Adebayo, the chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), debunked reports that the Nigerian Communications Commission (NCC) approved tariff increases for telecom and internet companies.
His rebuttal came after reports in some quarters claimed the NCC's new tariff took effect on July 29, 2024, and that Nigerians would pay more to make calls and browse the internet.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
