The payment firm of MTN Nigeria, Momo Payment Service Bank Limited, will be merged with Yello Digital Financial Services Limited (YDFS).
In a corporate document on Friday, MTN Nigeria said the board of directors are weighing the idea and have proposed it to the company’s shareholders, who will vote on the planned merger at the Annual General Meeting (AGM) scheduled for Tuesday, 18 April 2023.
Both Momo Payment Service Bank Limited and Yello Digital Financial Services Limited will be merged to form one company that will offer super-agent services and other permissible activities.
The company will hold the Payment Service Bank license granted by the Central Bank of Nigeria (CBN), the document revealed.
“It has been proposed that two of the Company’s subsidiaries (MoMo PSB and YDFS) be merged and integrated to form one company which will hold the Payment Service Bank license granted by the Central Bank of Nigeria and will also be capable of performing super-agent services and other permissible activities.
“It is envisaged that the merger will enhance value for the Company and its shareholders. Kindly vote in favour of the motion for the merger of MoMo PSB and YDFS,” MTN Nigeria said in the statement sent to shareholders and the investing public through the capital market authority, Nigerian Exchange Limited (NGX).
Meanwhile, Prime Business Africa previously reported that MTN Nigeria is restrategising its dividend offer, as it intends to encourage shareholders to wave cash for shares during dividend payment.
MTN Nigeria plans to retain more earnings and believes one of the ways to achieve it is through scrip dividend plan, which will prevent the company from disbursing cash during dividend payment, and instead hand shares to shareholders.
“Directors have proposed for shareholders’ approval at the AGM, a scrip dividend plan that would give interested shareholders the option to elect and receive new ordinary shares in the Company instead of receiving the dividend in cash.” MTN Nigeria said.