Why MTN Plan To Merge MoMo PSB and YDFS?

Kindly Share This Story:

……. pay additional cash dividend of N10.00 per every 2 Kobo ordinary shares

 

Telecommunications company, MTN Nigeria, has proposed a merger of its two finance subsidiaries; Momo Payment Service Bank Limited and Yello Digital Financial Services Limited. This was revealed in its proposed resolutions for its 2023 Annual General Meeting scheduled to hold on April18, 2023.

According to the report endorsed by Uto Ukpanah, Company Secretary sighted on the company website by The AmehNews (TAN) said that the proposed merger would “hold the Payment Service Bank licence granted by the Central Bank of Nigeria and will also be capable of performing super-agent services and other permissible activities.”

“That the Company’s two subsidiary entities: (a) MoMo Payment Service Bank Limited (“MoMo PSB”); and (b) Yello Digital Financial Services Limited (“YDFS”) be restructured by way of a merger (the “Merger”) or such other method, subject to obtaining all requisite regulatory and corporate approvals;

“That the Board of Directors be and is hereby authorised to engage the boards of MoMo PSB and YDFS and finalise the terms of the Merger and negotiate all transaction documents (including the merger term sheet, merger implementation agreement, and the scheme of merger) necessary for the implementation of the Merger; That all steps and/or actions taken by the Board of Directors in connection with the Merger be and are hereby ratified.

in the same vein, MTN If approved by members at the Annual General Meeting, the cash dividend will be paid on Thursday, 20 April 2023, at the rate of N10.00 per every 2 Kobo ordinary share (subject to appropriate deduction of withholding tax); to shareholders whose names appear in the Company’s Register of Members at the close of business on Monday, 27 March 2023 (bringing the total dividend for the year ended 31 December 2022 to N15.60).

“That in connection with dividends to be declared by the Company from time to time commencing from the 2023 financial year (“Future Dividend”) and if so determined by the Directors in respect of any such financial year or other financial period:
(I) shareholders entitled to receive cash dividends be offered a right of election to
receive New Ordinary Shares in lieu of cash dividends, and that such New Ordinary Shares be credited as fully paid; and when issued, shall rank pari passu in all respects with the Company’s existing ordinary shares;
(ii) such election to receive New Ordinary Shares in lieu of cash dividends must be exercised by shareholders in such mode a n d w i t h i n s u c h t i m e l i n e s a s a r e communicated to shareholders from time to time in respect of each such Future Dividend;
(iii) the New Ordinary Shares to be received by Shareholders shall be determined by their cash dividend entitlements using such reference price and/or other applicable calculation methodology approved by the D i r e c t o r s a n d c o m m u n i c a t e d t o shareholders in respect of a specific Future Dividend.
The resulting number of New Ordinary Shares shall be rounded down to the nearest whole number of shares in order to deal with any fractional shares which may arise;
(iv) the resolutions in paragraphs 10(A)(iv) to (vii) above in respect of the FY 2022 Dividend shall also apply to each Future Dividend

The report further disclosed that there will be election to receive New Ordinary Shares in lieu of cash dividends strategy which according to the management, must be exercised by shareholders not later than 11 April 2023. Detailed explanatory notes in respect of the Scrip dividend are provided in the Explanatory Memorandum.


Kindly Share This Story:

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings

x
%d bloggers like this: