MTN Uganda Limited has announced a significant restructuring plan for its mobile money subsidiary, MTN Mobile Money (U) Limited (MTN MoMo), in a move that could reshape the country’s fintech landscape.
The cautionary announcement issued by MTN Uganda Limited states in part: “MTN Uganda Limited (“MTN” or the “Company”) informs its shareholders that the Company intends to implement a proposed structural separation and reorganisation of its wholly owned subsidiary, MTN Mobile Money (U) Limited (“MTN MoMo”) (the “Proposed Transaction”).”
The proposed transaction, detailed in a cautionary announcement issued in compliance with the Uganda Securities Exchange (USE) Listing Rules 2025, will see MTN MoMo cease to be a wholly owned subsidiary of MTN Uganda. Instead, the mobile money and financial technology business will be operated by a new company following an amalgamation.
“If approved, the Proposed Transaction will result in MTN MoMo ceasing to be a subsidiary of MTN. The mobile money and fintech business currently operated by MTN MoMo will be transferred to a new company following an amalgamation,” The company added.
This new entity will be owned by MTN Group Fintech Holdings B.V. a subsidiary of MTN Group and a trust representing minority institutional and retail shareholders of MTN Uganda.
MTN Mobile Money is one of Uganda’s largest digital payment platforms, serving millions of users. The restructuring could unlock new growth opportunities, attract investment, and enhance regulatory compliance in Uganda’s rapidly evolving fintech sector.
However, the move requires shareholder approval at an Extraordinary General Meeting (EGM) scheduled for 2 July 2025. A detailed circular outlining the transaction has been published on MTN Uganda’s investor relations website (www.mtn.co.ug/investors), with electronic copies sent to shareholders who have registered their email addresses with the company’s share registrar.
The proposed restructuring of MTN Uganda’s mobile money subsidiary is contingent upon several critical conditions, including formal approval from the company’s shareholders during the upcoming Extraordinary General Meeting (EGM).
Additionally, the transaction must secure regulatory clearances from key authorities such as the Uganda Capital Markets Authority (CMA) and the Uganda Communications Commission (UCC), alongside other necessary governmental and financial sector approvals.
A comprehensive breakdown of all required regulatory endorsements has been detailed in Part 2, Page 31 of the shareholder circular, which has been made accessible to investors and stakeholders for review.
The successful completion of the deal hinges on these milestones, underscoring the importance of compliance with Uganda’s financial and telecommunications governance frameworks.
MTN has advised shareholders and the public to exercise caution when trading its shares until further updates are provided. The company emphasized that the USE’s approval of the announcement does not imply endorsement of the transaction’s merits.
“Shareholders and the public are advised to exercise caution when trading MTN shares. Further updates will follow.” The company said
2 July 2025: Shareholders will vote on the proposal at the EGM. If approved, MTN MoMo will transition into a new structure, with ownership shared between MTN Group Fintech and a trust for minority shareholders.
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