Shareholders of MTN Ghana are to convene at an Extraordinary Annual General Meeting (EGM) on May 21, 2025, on the localisation of Mobile Money Limited (MML) to Scancom PLC Shareholders.
It is expected that a new financial technology company, provisionally known as New FinCo, will take over the operations of MML in a landmark localisation exercise aimed at ensuring compliance with Ghana’s regulatory framework for electronic money issuers. This will seek to meet the 30% Ghanaian ownership requirement under the Payment System and Services Act.
No resolutions will be passed at the EGM.
A circular by MTN Ghana to shareholders, Licensed Dealing Members, the investing public, among others stated that he MML Localisation is being undertaken to satisfy a regulatory requirement.
The Payment Systems Act which regulates the operations of electronic money issuers in Ghana requires a dedicated electronic money issuer (mobile money service provider) to, among others, have a minimum of 30% of its shareholding held by Ghanaians. As a dedicated electronic money issuer, MML is required to comply with this requirement of the Payment Systems Act.
Currently, MML operates as a dedicated electronic money issuer under an approval granted by the Bank of Ghana.
Under the terms of the approval, MML is required to comply with the localisation requirement by June 13, 2025. Non-compliance with the localisation requirement carries significant risk to the MoMo Business, including adverse legal, regulatory, and/or commercial impacts or the potential shutdown of the MoMo Business.
The implementation of the MML Localisation, which will result in the Minority Shareholders retaining their interest in the MoMo Business through the Trust, is intended to achieve compliance with these localisation requirements.
In 2024, Scancom PLC adopted a two-phase approach to achieving the MML Localisation. The first phase of the MML Localisation focused on attaining a 30% localisation at the Scancom PLC level, which indirectly ensures 30% localisation at MML, as Scancom PLC is currently its sole shareholder. This milestone was reached in September 2024 through successful trades on the GSE over a 2-year period.
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