MTN Nigeria buyout minority shareholders in MoMo PSB for N6.95bn
MTN Nigeria Communication Plc has announced on the Nigerian Exchange Limited (NGX) that it has completed MoMo Payment Service Bank Limited’s minority shareholders buyout .
According to WESTERN POST findings, the transaction worth estimated N6.95 billion.
MoMo PSB is the fintech solution of MTN Nigeria which was licensed in 2022 by the CBN. MTN Nigeria had an 80% stake in the company, while Acxani Capital held a 20per cent stake.
The company secretary, Mr. Uto Ukpanah in a statement obtained by WESTERN POST stated that the telecommunication giant has successfully completed the purchase of 7.17 per cent minority shareholders in MoMo Payment Service Bank Limited (MoMo PSB) previously held by Acxani Capital Limited.
“Following the completion of the transaction, MoMo PSB is now a wholly-owned subsidiary of MTN Nigeria. Management believes this transaction will simplify and strengthen MoMo PSB’s operations, which is crucial for achieving its growth ambitions,” the statement added.
At the end of the second quarter of 2024, it was reported that MoMo PSB’s active wallet hit 5.5 million, reflecting an increase of 701,000 from the first quarter.
In the first half of 2024, MoMo PSB recorded a revenue of N48.6 billion, marking an 11% growth from the N43.6 billion revenue recorded in H1 2023. MoMo’s growth was driven majorly by Xtratime, the airtime lending service.
The company’s agents also increased by about 498,000 to 239,000 within the half-year, while transaction volume increased by 33.4per cent year-on-year within the half-year.
In H1 2024, the cash held for MoMo PSB customers declined by 72per cent to N2.15 billion, from N7.6 billion as of FYE 2023. The company has a liability of about N26.6 billion to MTN Nigeria as of H1 2024, while it paid N11.2 billion to the group during the half year.
