MTN Uganda Limited has received shareholder approval for the proposed structural separation of its mobile money and fintech business, MTN Mobile Money (U) Limited (“MTN MoMo”), marking a significant milestone in the company’s strategic evolution.
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The resolution was passed during a hybrid Extraordinary General Meeting (EGM) held earlier today, where shareholders voted overwhelmingly in support of the transaction. This move will see the amalgamation of MTN MoMo into a new entity, which, pending regulatory approvals, will operate under a new company majority-owned by MTN Group Fintech Holdings B.V. The remaining shares will be held through a trust structure, ensuring continued benefit for MTN Uganda’s institutional and retail shareholders.
Charles Mbire, Chairman of the Board of MTN Uganda, commended shareholders for their unwavering support:
“We are grateful to our shareholders for their confidence and backing of this strategic step. This transaction aligns with global market trends and is designed to unlock value for our shareholders while future-proofing the fintech business. The Board is confident that this decision is in the long-term interest of all stakeholders.”
Sylvia Mulinge, Chief Executive Officer of MTN Uganda, reiterated the company’s commitment to delivering meaningful impact through digital and financial inclusion:
“Today’s shareholder approval marks a significant milestone in our journey to accelerate financial and digital inclusion in Uganda. The structural separation of our fintech operations enables us to drive sharper operational focus, enhance agility, and unlock greater efficiency to deliver superior shareholder value and transform lives through digital innovation.”
The structural separation forms part of MTN Uganda’s alignment with the MTN Group’s Ambition 2025 strategy, aimed at leading digital solutions for Africa’s progress. It also underscores the company’s commitment to supporting Uganda’s broader digital transformation agenda.
The completion of the transaction remains subject to regulatory approvals and other customary conditions. MTN Uganda will continue to work closely with the relevant authorities to secure the necessary consents for implementation.
After a medium-term transitional period and subject to regulatory approvals and appropriateness of the market conditions, it is intended that the trust will dissolve and the new fintech entity will list, with MTN Uganda’s shareholders at the time subsequently holding two separate interests in two separately listed companies – MTN Uganda and the new fintech entity
