Scancom PLC (MTN Ghana) has successfully held an Extraordinary General Meeting (EGM) to update shareholders on the ongoing localisation and restructuring of its wholly owned subsidiary mobile money business, MobileMoney Limited (MML).
The EGM was called to provide shareholders with information on the localisation of MML in accordance with Ghana’s Payment Systems and Services Act, 2019, (Act 987), which requires all electronic money issuers operating in the country to maintain at least 30 per cent direct local ownership. In 2024, Scancom PLC attained 30 per cent localisation. MML is undergoing a structural separation from Scancom PLC to comply with the regulatory requirement for 30 per cent direct localisation.
During the meeting, Dr Ishmael Yamson, Board Chairman of Scancom PLC, emphasised that the restructuring of the MoMo business is not only a response to regulatory requirements but also a strategic step that will ensure its sustainable growth in the rapidly evolving digital financial services sector. Noting that all options for the restructuring had been considered, the Chairman assured shareholders that the process adopted would give the MoMo business time to mature before it is listed on the Ghana Stock Exchange.
Under the restructuring, a new company, New FinCo, will be formed to take over and operate the MoMo business. A trust will also be set up to hold shares on behalf of the minority shareholders. “The shareholding in New Finco will reflect the current ownership of Scancom PLC, translating it from an indirect ownership through Scancom PLC to a direct one,” the Chairman stated.
Shareholders were assured that their investments in the MoMo business remained secure. With respect to minority shareholders, Dr Yamson emphasized, “You will still own your Scancom PLC shares. You will also now have a beneficial interest in New FinCo through the Trust,” he explained. He indicated that the structure will also preserve the voting and dividend rights of shareholders.
Reiterating that the new structure is designed to protect shareholder interest, Dr Yamson further stated that “shareholders can expect to receive financial results separately for both Scancom PLC and the MoMo business, ensuring continued transparency.” “We are confident that this path forward is the right one, and we thank you for joining us on this journey,” he said.
Scancom PLC’s restructuring of its mobile money business represents one of the most significant changes in its operating model to date, focusing not only on compliance but also on unlocking long-term value.