MTN Nigeria is seeking to merge two businesses – MoMo PSB and Yello Digital Financial Services. This proposal is set to deliberated in the company’s next Annual General Meeting holding on the 18th of April, 2023.
The proposal specified in the “Explanatory Notes To The Resolutions To Be Proposed At The 2023 Annual General Meeting (AGM)” states that
“That the Company’s two subsidiary entities: (a) MoMo Payment Service Bank Limited (“MoMo PSB”); and (b) Yello Digital Financial Services Limited (“YDFS”) be restructured by way of a merger (the “Merger”) or such other method, subject to obtaining all requisite regulatory and corporate approvals;
- That the Board of Directors be and is hereby authorised to engage the boards of MoMo PSB and YDFS and finalise the terms of the Merger and negotiate all transaction documents (including the merger term sheet, merger implementation agreement, and the scheme of merger) necessary for the implementation of the Merger;
- That all steps and/or actions taken by the Board of Directors in connection with the Merger be and are hereby ratified.
The company said that the proposed merger would “hold the Payment Service Bank licence granted by the Central Bank of Nigeria and will also be capable of performing super-agent services and other permissible activities.”
MTN’s Yello Digital Financial Services, a subsidiary of MTN Nigeria, is a financial service provider in agency banking and super-agent operation under the Central Bank of Nigeria (CBN) Super-Agent framework and agent banking guidelines to provide amongst other services, agent network to serve financial institutions and Mobile Money operators in Nigeria. It was granted a full Super Agent Licence by CBN in 2019. It is the operator of MoMo Agent service.
MoMo PSB is a Payment Service Bank, granted CBN approval in 2022, to leverage on mobile and digital channels to enhance financial inclusion and stimulate economic activities at the grassroots through the provision of financial services.
According to a statement from MTN Nigeria board of directors, “It has been proposed that two of the company’s subsidiaries (MoMo PSB and YDFS) be merged and integrated to form one company, which will hold the Payment Service Bank license granted by the Central Bank of Nigeria and will also be capable of performing super-agent services and other permissible activities. It is anticipated that the merger will enhance the value for the company and its shareholders.
This is a highly recommended move as they have complementary services and it is better to one bigger brand rather than the two separate brands.
In its 2022 results released in February 2023, the company reported a revenue of ₦2.01 trillion, a 21.6% increase from 2021 and PAT of N358.88 billion, an 18.3% increase from 2021 for the year.
2 Comments
Pingback: MTN collaborates with Jumo to provide short-term loans - Innovation Village | Technology, Product Reviews, Business
Pingback: MTN Nigeria recovers over half of lost funds after mobile money service glitch - Innovation Village | Technology, Product Reviews, Business