Afrigather MTN Nigeria has purchased the remaining shares from the minority shareholder in MoMo Cost Service Financial institution (MoMo PSB) for N6.95 billion. In keeping with a company disclosure on the NGX web site, MTN Nigeria has finalised the acquisition of the 7.17 % stake beforehand held by Acxani Capital, making MoMo PSB an entirely owned subsidiary of MTN Nigeria.
MoMo PSB is MTN Nigeria’s fintech resolution, which the CBN licensed in 2022. Initially, MTN Nigeria held an 80 % stake within the firm, whereas Acxani Capital owned 20 %. Acxani Capital proposed promoting their 20% stake in MoMo in Might 2024, however their stake was in the end diluted to 7.17 %.
MTN Nigeria and Acxani Capital reached a N6.95 billion settlement for the 7.17% stake. The acquisition led to an N12.97 billion decline in MTN’s “Different Reserves,” because the group spent N16.35 billion on the acquisition of the minority stake whereas it acquired belongings price N3.38 billion from Acxani Capital.
The N16.35 billion contains N6.95 billion paid to Acxani and N9.4 billion spent as funding on MoMo. On the finish of the second quarter of 2024, it was reported that MoMo PSB’s energetic pockets hit 5.5 million, reflecting a rise of 701,000 from the primary quarter.
Within the first half of 2024, MoMo PSB recorded income of N48.6 billion, an 11 % improve from the N43.6 billion income recorded in H1 2023. MoMo’s development was pushed primarily by Xtratime, the airtime lending service.
The corporate’s brokers additionally elevated by about 498,000 to 239,000 inside the half-year, whereas transaction quantity elevated by 33.4 % year-on-year inside the half-year.
In H1 2024, the money held for MoMo PSB clients declined by 72 % to N2.15 billion, from N7.6 billion as of FYE 2023. As of H1 2024, the corporate had a legal responsibility of about N26.6 billion to MTN Nigeria, whereas it paid N11.2 billion to the group through the half-year.
Acxani Capital is owned by Munir Ja’afaru, a former director within the defunct NITEL in addition to a prince within the Zazzau Emirate. He served as the previous district head of Basawa in Zaria, and he as soon as served because the chairman of the Nationwide Export Processing Zones Authority (NEPZA) till 2004.
