MTN Nigeria has proposed to merge its payment firm, Momo Payment Service Bank Limited and its digital arm, Yello Digital Financial Services Limited (YDFS).
This was disclosed in a document titled; EXPLANATORY NOTES TO THE RESOLUTIONS TO BE PROPOSED AT THE 2023 ANNUAL GENERAL MEETING (AGM)”
In the document obtained by Ripples Nigeria on Friday, MTN Nigeria appealed to the company’s shareholders to vote in favour of the motion for the merger at their Annual General Meeting (AGM) to be held on Tuesday, April 18, 2023.
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MTN Nigeria said the merger of Momo Payment Service Bank Limited and Yello Digital Financial Services Limited will result in one company that will hold the Payment Service Bank license granted by the Central Bank of Nigeria (CBN).
The company that emerges from the merger will also be capable of performing super-agent services and other permissible activities.
“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,” the statement from the board of directors says.