MTN Uganda Limited has announced plans to restructure its mobile money business through the separation and reorganization of its wholly owned subsidiary, MTN Mobile Money Uganda Limited (MTN MoMo), as part of its ongoing fintech strategy.
In a cautionary statement issued to shareholders and the public in compliance with Uganda Securities Exchange (USE) Listing Rules 2025, the company revealed that the proposed transaction, if approved, would result in MTN MoMo ceasing to be a subsidiary of MTN Uganda.
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The mobile money and financial technology services currently managed by MTN MoMo will be transferred to a newly formed company following a corporate amalgamation.
“This proposed transaction reflects our ongoing commitment to strengthen our fintech operations and align our business structure with MTN Group’s long-term strategic goals,” the company said in its statement to shareholders.
Under the proposed structure, the new company will be jointly owned by MTN Group Fintech Holdings B.V. and a trust representing MTN Uganda’s minority institutional and retail shareholders.
The restructuring is designed to create a more specialized fintech entity that can better respond to market opportunities and regulatory developments in the digital financial services sector.
“By separating the mobile money business into a standalone entity, we believe we can unlock greater value for both our shareholders and our customers as we continue to scale up financial services across Uganda,” MTN Uganda added.
MTN Uganda shareholders are scheduled to vote on the proposed transaction at an extraordinary general meeting (EGM) set for July 2, 2025.
In preparation for this, a circular containing detailed information on the proposed transaction was issued on June 11, 2025, and is accessible to shareholders both electronically and via the company’s investor relations website at www.mtn.co.ug/investors.
The company emphasized that the transaction remains subject to shareholder approval, as well as various regulatory consents and no-objections.
“We remain fully committed to working with regulators and stakeholders to ensure the transaction meets all necessary legal and governance requirements,” MTN Uganda stated.
In its advisory, MTN Uganda urged shareholders and the investing public to exercise caution when dealing in company shares while the transaction remains under consideration.
Further updates will be provided as the transaction progresses MTN Uganda is one of the country’s leading telecommunications companies, offering a wide range of services including voice, data, digital and financial services.
Established in 1998, it operates as a subsidiary of MTN Group Africa’s largest mobile network operator, headquartered in South Africa, with operations spanning over 19 countries across Africa and the Middle East.
Through its mobile money arm, MTN MoMo, the company has become a major player in Uganda’s rapidly growing financial technology sector.
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MTN MoMo allows customers to carry out mobile-based financial transactions such as money transfers, bill payments, savings, lending, insurance, and merchant payments, playing a significant role in deepening financial inclusion in Uganda.
The proposed separation of MTN Uganda’s mobile money business is part of MTN Group’s wider Ambition 2025 strategy, which seeks to unlock value in its fintech and digital platforms while allowing its telecommunications and financial services businesses to operate independently.
