Shareholders of Scancom PLC (MTN Ghana) have by a majority vote approved the merger of MobileMoney Limited (MML) and MobileMoney Fintech Limited.
By this, all businesses, assets, liabilities and consenting employees of MML will be transferred to the newly incorporated company, MobileMoney Fintech Limited.
The shareholders have also approved the waiver of a fairness report, a document which typically contains the assessment of the fairness of a merger.
This was done at an extraordinary general meeting held at the University of Professional Studies today.
The move forms part of efforts by the company to comply with Bank of Ghana’s directive requiring dedicated electronic money issuers to maintain at least 30 percent Ghanaian ownership in line with the Payment Systems and Services Act of 2019 (Act 987)
Following the approval from members, the new company will now have two shareholders — MTN Ghana Fintech Trust and MTN Dutch Holdings BV, with the latter being the majority shareholder.
The Trust, will hold the remaining 30 per cent stake in the new company on behalf of minority shareholders to ensure their interests both economic and governance are well represented in MobileMoney Fintech Limited.
The company is expected to set up a new governance structure which would be fully independent of Scancom PLC with a goal of listing independently on the Ghana Stock Exchange.
Robust
An Independent Non-Executive Director and Chairperson of MobileMoney Fintech Limited, Victoria Bright, explained that with this development, the mobile money business, will now operate under a newly formed entity, Mobile Money FinTech Limited with the aim of establishing a more robust framework for the mobile money services in the country.
The company, she said would focus on completing a digital transformation and achieving operational independence from Scancom PLC.
Additionally, she said the company would focus on enhancing governance and leadership structures in preparation for the eventual listing.
Ms. Bright reassured shareholders that existing shares in Scancom PLC will be mirrored in the new entity, allowing for a smooth transition and separate pricing on the stock exchange when the time comes.