MTN Nigeria, led by Karl Toriola, acquires remaining stake in MoMo PSB for $4.4 million

Timilehin Adejumobi -

Key Points

  • MTN Nigeria acquires remaining 7.17% minority stake in MoMo PSB for $4.4 million, making it a wholly-owned subsidiary.
  • The deal reduces MTN’s “Other Reserves” by $8.1 million, including $4.4 million paid to Acxani and $5.9 million invested in MoMo PSB.
  • MTN Nigeria plans to build West Africa’s largest data center, a Tier 4 facility with 99.995% uptime, amid strong revenue growth.

MTN Nigeria, the largest telecommunications company in Nigeria led by leading business executive Karl Toriola, has acquired the remaining minority stake in its payment service unit, Momo Payment Service Bank Limited (MoMo PSB), for $4.4 million. This move makes MoMo PSB a wholly-owned subsidiary of MTN Nigeria.

The deal, disclosed on the NGX website, confirmed that MTN Nigeria completed the acquisition of a 7.17 percent stake from Acxani Capital Limited. Initially, MTN Nigeria held an 80 percent stake in MoMo PSB, while Acxani Capital held 20 percent. However, Acxani’s stake was diluted to 7.17 percent before the transaction.

MTN Nigeria expands fintech presence

MTN Nigeria and Acxani Capital agreed on a purchase price of N6.95 billion for the 7.17 percent stake. The acquisition led to a N12.97 billion ($8.1 million) reduction in MTN’s “Other Reserves.” The total consideration of N16.35 billion ($10.3 million) included the N6.95 billion ($4.4 million) paid to Acxani and N9.4 billion ($5.9 million) invested in MoMo PSB, alongside the acquisition of N3.38 billion ($1.5 million) in assets from Acxani Capital.

Licensed by the Central Bank of Nigeria (CBN) in 2022, MoMo PSB represents MTN Nigeria’s strategic entry into the fintech space, providing a range of payment services. This move is part of MTN Nigeria’s broader ambition to enhance its digital service offerings and strengthen its presence in the financial services sector.

MTN Nigeria plans major data center

MTN Nigeria, a subsidiary of MTN Group, Africa’s leading mobile network operator, offers a comprehensive suite of telecommunications services, including mobile network access, internet connectivity, bill payments, and device financing solutions.

Nigerian business leader Karl Toriola, who took the helm as CEO of MTN Nigeria in October 2020 following a successful stint as VP of MTN’s West and Central Africa region, has been instrumental in the company’s impressive financial performance in recent years.

In recent developments, MTN Nigeria announced plans to build West Africa’s largest data center, a 1,500-rack facility certified at Tier 4 for top-tier reliability with an uptime of 99.995 percent. It saw its revenue in the first half of 2024 surge by 32.8 percent to $927.07 million.