MTN Nigeria has completed the acquisition of a 7.17 per cent stake in MoMo Payment Service Bank (MoMo PSB) from Acxani Capital for N6.95 billion ($4.36 million). This acquisition makes the fintech subsidiary a wholly-owned entity of the telecom giant.
This transaction was disclosed in a corporate filing on the Nigerian Exchange (NGX) website recently.
Prior to this transaction, MTN Nigeria held an 80 per cent stake in MoMo Payment Service Bank (MoMo PSB), while Acxani Capital owned the remaining 20 per cent. In May 2024, Acxani Capital proposed to dispose of its 20 per cent stake, which was reduced to 7.17 per cent before the acquisition was finalized.
According to reports, MTN Nigeria and Acxani Capital agreed on a purchase price of N6.95 billion for the 7.17 per cent stake. This transaction resulted in a decrease of N12.97 billion in MTN’s “Other Reserves.”
The agreement between MTN Nigeria and Acxani Capital included a total payment of N16.35 billion, which covered the N6.95 billion for the minority stake and an additional N9.4 billion invested in MoMo PSB.
This transaction resulted in a N12.97 billion reduction in MTN Nigeria’s “Other Reserves” and included the acquisition of assets worth N3.38 billion from Acxani Capital.
MoMo PSB has demonstrated substantial growth, with active wallets increasing to 5.5 million by the end of the second quarter of 2024, up by 701,000 from the first quarter.
The fintech company reported N48.6 billion in revenue for the first half of 2024, marking an 11 per cent increase from the N43.6 billion recorded during the same period in 2023. This growth was primarily driven by its airtime lending service, Xtratime.
Acxani Capital, owned by Munir Ja’afaru, a former director at the defunct NITEL and a prince of the Zazzau Emirate, is a relatively private entity with limited public information.
Ja’afaru is also linked to Novare Fund Manager Limited, an asset management company focused on the real estate sector in Sub-Saharan Africa.