Kampala, Uganda- 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.
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 minority 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.”
Richard Yego, the Chief Executive Officer of MTN MoMo Uganda Ltd expressed his optimism regarding MoMo’s growth following the separation: “As part of our Ambition 2025, building the largest digital platforms was one of the pillars. The structural separation is part of the journey of building the largest Fintech platform in Africa. As MTN MoMo, we have done quite a lot, and we are happy that the shareholders have given this approval. Once the separation is complete, we shall be able to serve our customers better.”
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.
S&L Advocates and Stanbic Bank Uganda Limited are acting as legal and financial advisors to MTN Uganda on the transaction. Further updates will be shared in line with the company’s regulatory and disclosure obligations.
