MTN Ghana is set to restructure its mobile money subsidiary, MobileMoney LTD (MML), in alignment with Ghana’s financial regulations.
MTN’s MobileMoney Ltd (MML) falls short of regulations accompanying the Payment Systems and Services Act, which requires companies operating as dedicated electronic money issuers to have a minimum of 30% Ghanaian ownership. As a result, it faces a deadline on June 13, 2025, to comply or risk severe regulatory sanctions, including a potential shutdown.
In a circular to shareholders dated April 30, 2025, MTN Ghana (Scancom PLC) announced that it will dissolve MML and transfer its assets, operations, and staff to a newly incorporated local entity named New FinCo.
A trust mechanism will be established to hold 32.13 per cent of New FinCo on behalf of minority shareholders, ensuring compliance and maintaining their economic interests in the mobile money business, until the company’s anticipated GSE listing, where shareholders will receive direct ownership stakes. The remaining 67.87% will be held by the MTN Group.
The company stressed that the transition will be tax-neutral for shareholders, with costs shared between Scancom PLC, New FinCo, and MTN Group.
Shareholders have been invited to an Extraordinary General Meeting on May 21, 2025, at the Accra International Conference Centre, with virtual participation available, and no shareholder vote required.
