Scancom PLC, operator of MTN Ghana, will host an Extraordinary General Meeting on 21 May 2025 to outline plans to restructure its mobile money business, MobileMoney LTD (MML), to meet Ghana’s local ownership requirements.
The move aims to align with the Payment Systems Act, which mandates that electronic money issuers have at least 30% Ghanaian shareholding by June 2025.
The restructuring involves merging MML with a new Ghanaian entity, New FinCo, and establishing a trust to hold minority shareholders’ stakes. Under the proposed structure, the trust will mirror the ownership interests of non-MTN Group shareholders in Scancom PLC, ensuring compliance while preserving liquidity for investors. If approved, New FinCo will absorb MML’s assets, liabilities, and employees, with MML dissolving post-merger.
Scancom PLC’s board emphasized the urgency of compliance, noting non-compliance risks regulatory penalties or operational shutdowns. The company already achieved 30% local ownership at the parent level in 2024 through stock market transactions. The next phase focuses on restructuring MML, with New FinCo expected to list on the Ghana Stock Exchange within three to five years, allowing direct shareholder trading.
Financial advisers IC Securities and Sentinel Global, alongside legal firm Benisi-Enchill, guided the transaction. The merger is projected to be tax-neutral under Ghana’s Income Tax Act, with costs shared among Scancom, New FinCo, and MTN Group. Regulatory approvals from Ghana’s central bank and labor authorities remain pending.
The move reflects broader efforts by multinational firms to adapt to African localization laws. MTN, which operates in multiple markets, has faced similar mandates in Nigeria and Uganda. For Ghana, ensuring local participation in its thriving mobile money sector a key driver of financial inclusion remains a regulatory priority.
