Sunday, July 27, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
No Result
View All Result

Mobile money restructuring won’t diminish share value — Yamson

MoMo restructuring has no negative effect on share price — Yamson assures investors

NewsCenta by NewsCenta
May 23, 2025
in Business
2
Mobile money restructuring won’t diminish share value — Yamson

Mobile money

Share on FacebookShare on Twitter

Board Chairman of MTN Ghana, Dr. Ishmael Yamson, has reassured shareholders that their economic interests will be fully preserved despite the company’s landmark restructuring of its mobile money subsidiary, MobileMoney Limited (MML).

Speaking at an Extraordinary General Meeting held in Accra on Wednesday, May 21, 2025, Dr. Yamson explained that the transition, mandated by the Payment Systems and Services Act of 2019—is not only regulatory but strategic, positioning MTN’s mobile money business for long-term growth.

You might also like

Ghana Sukuk bonds

Ghana eyes Sukuk bonds to help bridge infrastructure gap

July 26, 2025
Bank Ghana non-interest

Bank of Ghana engages clergy on non-interest banking

July 26, 2025

“You will still own your Scancom PLC shares,” Dr. Yamson affirmed. “You also now have a valid interest in the New FinCo through the trust. You will receive dividends and voting rights through the trust when you buy our shares… You will not lose any value.”

He noted that this new structure will ultimately convert into direct shareholder equity when the restructured entity is listed on the Ghana Stock Exchange.

Meeting Ghana’s 30% local ownership law

The restructuring stems from a Bank of Ghana directive under the Payment Systems and Services Act, which mandates that all electronic money issuers must attain a minimum of 30% Ghanaian ownership by June 13, 2025.

Failure to meet this benchmark could mean severe consequences for MTN Ghana’s mobile money operations, including the risk of losing its license.

To comply, Scancom PLC—the parent company of MML—has embarked on a two-phase localisation strategy.

The first phase, completed in September 2024, saw 30% local ownership achieved at the Scancom PLC level through stock market transactions.

New FinCo emerges to replace MML

The second phase involves the creation of a new company, provisionally known as New FinCo, which will absorb MML’s assets, liabilities, and workforce.

Once this transition is complete, MML will cease to exist, and New FinCo will operate as the new electronic money issuer.

Dr. Ishmael Yamson

The process includes securing all relevant approvals from stakeholders, including creditors, employees, the Chief Labour Officer, and the Bank of Ghana.

A certificate of merger from the Registrar will formalise the process.

Dr. Yamson stressed the strategic importance of this transformation, stating, “This change is good for the future of our business and your investment. It will liberate MML to grow faster, compete better, and attract the right skills to thrive in a digital future.”

Trust-based model to secure minority interests

At the heart of the localisation strategy is a specially created Trust that will hold a 32.13% stake in New FinCo on behalf of minority shareholders.

This ensures they maintain economic and governance interests in the company even before it is listed.

This structure mirrors the ownership framework of Scancom PLC and enables institutional investors, who are typically restricted to listed equities—to retain indirect exposure to the MoMo business through Scancom PLC shares.

Once New FinCo is listed on the Ghana Stock Exchange, shares held by the Trust will be distributed directly to minority shareholders, converting indirect interest into direct equity.

MTN Group to retain majority control

Despite the restructuring, MTN Group will maintain its leadership in the mobile money sector, retaining 67.87% ownership in New FinCo via its investment arms, Investcom and MTN Dubai.

The Group has given assurances that it will not divest any portion of its stake prior to the company’s public listing.

Additionally, the employee share scheme—which has earmarked over 563 million shares—will continue uninterrupted.

Public listing and maturity of new FinCo

New FinCo will operate as a privately held entity in its initial years, but plans are already in place to list the company on the Ghana Stock Exchange within 3 to 5 years.

This timeline allows the business to reach operational and technological maturity before going public.

Notably, New FinCo’s listing is expected to occur ahead of Fintech B.V., MTN’s broader international fintech vehicle.

Backing the company’s strategic moves are strong financial results.

MTN Ghana posted a profit after tax of GH₵5.03 billion in 2024—a 26.3% increase from GH₵3.98 billion in 2023.

MoMo revenues also witnessed remarkable growth, rising by 54.4% year-on-year to GH₵4.4 billion.

The surge was fueled by a 12.8% increase in active users, a revised fee structure, and the expansion of advanced services.

Transaction data further highlights the sector’s vitality: withdrawals increased by 45.2%, while transfers grew by 44.6%. MoMo’s share of total service revenue climbed to 24.9%, up from 21.7% in the previous year.

Engagement and governance

While no resolution was passed at the recent EGM, shareholders were thoroughly briefed on the steps ahead.

MTN Ghana’s management is committed to continued dialogue and transparency throughout the transition process.

An upcoming EGM will be convened for shareholders to vote on the proposed merger and finalisation of the New FinCo structure. Any regulatory adjustments to the structure will be communicated in advance.

This restructuring—arguably one of the most significant in Ghana’s fintech history—solidifies MTN’s role in fostering a sustainable and inclusive digital finance landscape.

Commitment to Ghana’s digital financial future

The restructuring of MML into New FinCo is more than a compliance exercise.

It signals MTN Ghana’s dedication to building a locally anchored, future-ready fintech platform at a time when mobile money transactions have exceeded GH₵3 trillion annually.

As Ghana’s digital economy grows, MTN Ghana’s localisation initiative stands as a blueprint for integrating regulatory compliance with shareholder protection and strategic expansion.

Post Views: 104
Tags: Dr. Ishmael YamsonMobile Money
NewsCenta

NewsCenta

Related Stories

Ghana Sukuk bonds

Ghana eyes Sukuk bonds to help bridge infrastructure gap

by NewsCenta
July 26, 2025
0

Ghana is eyeing the introduction of Sukuk bonds as an innovative and ethical alternative to conventional debt instruments to finance...

Bank Ghana non-interest

Bank of Ghana engages clergy on non-interest banking

by NewsCenta
July 26, 2025
0

The Bank of Ghana has commenced high-level stakeholder engagements with religious leaders to lay the groundwork for the institutionalisation of...

Rockway Oilfields ISO

Rockway Oilfields secures triple ISO certification

by NewsCenta
July 25, 2025
0

Rockway Oilfields Services Ghana Limited, an indigenous Ghanaian company, is proud to announce that it has been officially awarded ISO...

Ecobank Ghana Chipa

Ecobank Ghana to plant 1,700 trees to restore Chipa Forest

by Selorm Gborbidzi
July 25, 2025
0

Ecobank Ghana has commenced a significant reforestation project in the Chipa Forest Reserve, in the Shai-Osudoku District of the Greater...

Recommended

Mahama Daddy Lumba

Ghana has lost a musical treasure — Mahama mourns Lumba

July 27, 2025
Daddy GOAT Ghanaian

Is Daddy Lumba the GOAT of Ghanaian Music?

July 27, 2025
Kwesi, Tawiah-Benjamin

GH₵700m tomato scholarships to study abroad

July 27, 2025

Popular Story

  • Causes death men

    10 of top 11 causes of death killing more men in Ghana

    695 shares
    Share 278 Tweet 174
  • Bissue floors High Court and OSP at Supreme Court

    688 shares
    Share 275 Tweet 172
  • Monday, May 26, 2025 Newspaper Headlines

    668 shares
    Share 267 Tweet 167
  • Tuesday, June 10, 2025 Newspaper Headlines

    658 shares
    Share 263 Tweet 165
  • See the list of over 200 songs Daddy Lumba released

    656 shares
    Share 262 Tweet 164
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About Us
  • Contact Us
  • Health
  • Education
  • Mining
  • Energy
  • Telecoms
  • Agriculture
  • Trade
  • Opinion
  • Videos

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion

© 2025 All Rights Reserved NewsCenta.

Connect with us