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Mobile money fully owned by listed company, says MTN
New and existing MTN shareholders will continue benefiting from proceeds from financial technology and infrastructure businesses. Photo / File
What you need to know:
- MTN says shareholders both new and old “will continue to benefit from financial technology and infrastructure businesses, whether in the form of listed or unlisted interests, irrespective of any potential restructuring”.
MTN has told investors that its mobile money unit is still part of the listed company, noting that new investors, who bought into the telecom in the secondary offer, which was closed on June 10, will continue to benefit from proceeds generated from financial technology.
While announcing results of the telecom’s secondary offer, Ms Sylvia Mulinge, the MTN chief executive officer, said MTN Mobile Money is 100 percent owned by MTN Uganda, which is the listed company, clarifying on a report by Monitor, which had indicated that the telecom had plans of separating mobile money from the listed company.
“… therefore, all shareholders of MTN Uganda, including new [ones] who participated in the [secondary] offer, will continue to benefit from MTN’s financial technology business,” she said.
In its prospectus ahead of listing in 2021, MTN listed mobile money as one of the units in a company it floated a 20 percent of stake in fulfilment of a regulatory requirement that requires telecoms to offer a part of their holdings to Ugandans.
Subsequently, while announcing the secondary offer on May 26, MTN indicated that in the prospectus for the initial public offering between October 11 and November 22, 2021 and in subsequent annual reports, it had informed shareholders and the wider public about the implementation of the Ambition 2025 strategy, which involves the “strategic repositioning of its infrastructure assets and platforms, such as the separation of financial technology platforms into a new wholly owned subsidiary, from telecommunications services in 2021.
The strategy is anchored on creating a business with a clear focus on building value and attracting third-party capital and partnerships into these businesses over the medium-term, including consolidating holdings in financial technology units of 16 operations, including MTN Uganda.
“The separation and consolidation of the financial technology and infrastructure businesses of the relevant MTN operations will be undertaken on an arms’ length basis and in line with market standard ensuring equitable treatment of minority shareholders,” MTN said, noting that the decision on the appropriate shareholding structure of MTN Group’s financial technology and infrastructure businesses will take into account minority shareholder protection requirements, applicable local laws and regulations and other structuring considerations.
Ms Mulinge indicated that all shareholders including new ones “will continue to benefit from financial technology and infrastructure businesses, whether in the form of listed or unlisted interests, irrespective of any potential restructuring”.
