MTN Group says it plans to separate its financial technology (fintech) operations in Ghana and Uganda by the first half of 2025 — but the process is facing regulatory challenges in Nigeria.
The move, according to Bloomberg on Monday, is part of a broader restructuring effort that will allow Mastercard Inc. to acquire a minority stake in high-growth units.
Speaking to the media organisation, Ralph Mupita, MTN chief executive officer (CEO), said the move is also part of a process to complete a deal that was made with Mastercard in 2023.
According to Mupita, while the separation process is more advanced in Uganda and Ghana, Nigeria presents additional regulatory challenges.
Advertisement
“Nigeria has a bit more complexity with some more regulatory processes to work through,” he said.
“MTN is also open to network sharing deals, in line with the trend seen in European market.”
Bloomberg said the size of Mastercard’s stake could be as much as $200 million, with the exact details to be disclosed once the deal closes, valuing the fintech unit at $5.2 billion.
Advertisement
In 2023, MTN said it signed a memorandum of understanding (MoU) with Mastercard to sell a minority stake in its fintech business valued at $5.2 billion.
The telecommunications company said the signing of the definitive investment agreements is expected to occur in the very near term as both companies approach finalisation of customary due diligence.
The group said the investment would be subject to customary closing conditions.
Advertisement
Add a comment
