MTN Uganda Offers Exit Option Retail Investors as MoMo Spin-Off Nears
TLDR
- MTN Uganda will open a 14-day exit window for minority retail shareholders ahead of the planned separation of its mobile money business
- The move is part of MTN Group’s “Ambition 2025” strategy to accelerate fintech growth across Africa
- The new company will operate independently from telecom services and be regulated under Uganda’s National Payment Systems Act
MTN Uganda will open a 14-day exit window for minority retail shareholders ahead of the planned separation of its mobile money business. The move is part of MTN Group’s “Ambition 2025” strategy to accelerate fintech growth across Africa.
Under the plan, MTN Mobile Money (U) Ltd will merge into a new fintech company, MTN New FinCo, jointly owned by MTN Group Fintech Holdings and a trust representing MTN Uganda shareholders. The trust will preserve shareholder rights and economic benefits after the spin-off.
The new company will operate independently from telecom services and be regulated under Uganda’s National Payment Systems Act. Shareholders uncomfortable with the new structure can sell their shares through licensed brokers during the exit window. MTN has committed to buy back any remaining shares.
To counter the rise in withholding tax on dividends from 10% to 15%, a dividend adjustment trust will absorb the difference for Ugandan retail investors.
The EGM to approve the restructure has been pushed from July 2 to July 22, 2025. MTN said the hybrid format will boost participation across Uganda and the diaspora.
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Key Takeaways
MTN Uganda’s spin-off of its mobile money unit reflects a broader telecom trend to separate and monetize high-growth fintech arms. Similar moves by firms like Airtel Africa signal rising investor appetite for standalone digital finance businesses. MTN MoMo processes millions of transactions monthly and represents a significant share of Uganda’s digital payments market. The restructuring is expected to pave the way for partnerships, capital raising, and a future listing. However, concerns from minority investors over transparency and control reflect wider tensions around shareholder protections in African markets. The use of a trust to hold fintech shares for MTN Uganda investors is novel but raises questions about governance. Whether this model balances group expansion goals with local investor interests remains to be seen.
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