MTN closes MoMo PSB Acquisition Deal

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by Giorgi Kostiuk

2 years ago

MTN Nigeria has completed the purchase of the remaining 7.17% stake in its subsidiary, MoMo Payment Service Bank (MoMo PSB), enhancing its foothold in Nigeria's financial sector. The acquisition was announced in MTN's financial statements for the first nine months of 2024.

Deal Details

An agreement for the acquisition was reached in May 2024 with all stakeholders of MoMo PSB. The total cost of the transaction was N16.35 billion. MTN Nigeria paid N6.95 billion directly to Acxani Capital and further invested N9.4 billion in MoMo. The purchase also included assets worth N3.38 billion from Acxani Capital.

In May 2024, the non-controlling interest holders in MoMo PSB proposed the sale of their 20% stake, which had been reduced to a 7.17% minority interest, to MTN Nigeria Communications Plc.None

MoMo PSB's Growth in 2024

MTN previously held 80% of MoMo PSB shares, while Acxani Capital owned 20%. By 2024, MoMo PSB demonstrated significant growth, sparking MTN's interest. In February, the company initiated a multi-market partnership to launch a prepaid virtual card, enabling customers to access over 100 million acceptance points globally.

Financial Metrics and Expansion

For the first half of 2024, MoMo PSB reported a revenue of N48.6 billion, showing an 11% increase from the previous year. The number of active wallets reached 5.5 million, and the number of agents increased to 498,000. In April, MTN added 25 new wallet corridors and expanded its services to 10 countries.

With the closure of this deal, MTN Nigeria aims to leverage MoMo PSB's mobile banking infrastructure to offer improved customer convenience and deepen its presence in Nigeria's financial services market.

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