MTN Mobile Money remains part of listed company

by Business Times writer
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MTN Uganda has assured investors that MTN mobile money remains a part of the publicly listed company. It highlighted that new investors who acquired shares during the secondary offer that concluded on June 10, will continue to reap benefits from the revenue generated by its financial technology services.

“All shareholders of MTN Uganda, including new ones who participated in the [secondary] offer, will continue to benefit from MTN’s financial technology business,” said MTN Uganda CEO, Sylvia Mulinge.

This clarification counters recent media reports suggesting that MTN intended to separate its mobile money operations from the listed entity.

MTN Uganda’s primary operations encompass providing telecommunications services, including network services, digital and financial technology services, interconnect and roaming services, the sale of mobile devices, and mobile money services through MTN Mobile Money Uganda Limited.

MTN Mobile Money Uganda Limited was established following the enactment of the National Payments System (NPS) Act 2020. This legislation introduced licensing and structural requirements necessitating a corporate reorganization within the telecom sector to ensure the segregation of functions as mandated by the Bank of Uganda.

One of the principal requirements of the NPS Act is that telecom operators, like MTN, must separate their telecommunications operations (voice) from their digital financial services (mobile money).

Consequently, MTN was obliged to transfer its mobile money business to a wholly-owned subsidiary under MTN Uganda.

This new mobile money subsidiary is entirely owned by the listed company. Therefore, shareholders of MTN Uganda fully benefit from the economic gains of the MTN mobile money business.

This means that investors purchasing shares in MTN Uganda Limited gain complete ownership of the MTN Mobile Money company.

The mobile money business significantly contributes to shareholders’ earnings.

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