MTN Nigeria, the largest telecommunications company in Nigeria led by leading business executive Karl Toriola, has acquired the remaining minority stake in its payment service unit, Momo Payment Service Bank Limited (MoMo PSB), for $4.4 million. This move makes MoMo PSB a wholly-owned subsidiary of MTN Nigeria.
The deal, disclosed on the NGX website, confirmed that MTN Nigeria completed the acquisition of a 7.17 percent stake from Acxani Capital Limited. Initially, MTN Nigeria held an 80 percent stake in MoMo PSB, while Acxani Capital held 20 percent. However, Acxani's stake was diluted to 7.17 percent before the transaction.
MTN Nigeria expands fintech presenceMTN Nigeria and Acxani Capital agreed on a purchase price of N6.95 billion for the 7.17 percent stake. The acquisition led to a N12.97 billion ($8.1 million) reduction in MTN's "Other Reserves." The total consideration of N16.35 billion ($10.3 million) included the N6.95 billion ($4.4 million) paid to Acxani and N9.4 billion ($5.9 million) invested in MoMo PSB, alongside the acquisition of N3.38 billion ($1.5 million) in assets from Acxani Capital.
Licensed by the Central Bank of Nigeria (CBN) in 2022, MoMo PSB represents MTN Nigeria's strategic entry into the fintech space, providing a range of payment services. This move is part of MTN Nigeria's broader ambition to enhance its digital service offerings and strengthen its presence in the financial services sector.
