MTN Uganda wants to break up its mobile money business from the main company. The phone company filed papers last week about splitting MTN MoMo away from MTN Uganda. Company leaders must ask shareholders to vote on this plan before anything happens. Government officials also need to approve the deal before it can move forward. MTN Uganda set up a special meeting for July 2 where people who hold shares will decide.
The new setup would put MTN MoMo under a different company structure. MTN Group Fintech Holdings would control part of the separated business. A special trust would represent smaller shareholders who have stakes inside MTN Uganda. The trust would hold shares for both big investment firms and regular people who bought stock. Company documents from June 11 explain all the details about how this change would work.
MTN MoMo handles huge amounts of money for Uganda customers. The service moved around 97 trillion shillings last year through its payment system. More than 10 million people use MTN MoMo to send and receive money regularly. The mobile money division brings back nearly 30 percent of all the money MTN Uganda makes. Phone companies around the world are separating their financial services to follow new rules and make more profit for investors.
The new setup would put MTN MoMo under a different company structure. MTN Group Fintech Holdings would control part of the separated business. A special trust would represent smaller shareholders who have stakes inside MTN Uganda. The trust would hold shares for both big investment firms and regular people who bought stock. Company documents from June 11 explain all the details about how this change would work.
MTN MoMo handles huge amounts of money for Uganda customers. The service moved around 97 trillion shillings last year through its payment system. More than 10 million people use MTN MoMo to send and receive money regularly. The mobile money division brings back nearly 30 percent of all the money MTN Uganda makes. Phone companies around the world are separating their financial services to follow new rules and make more profit for investors.
