MTN Group Limited, a leading telecommunications company in the African market, has announced plans to offload about 575 million units of its shares in its Nigerian subsidiary- MTN Nigeria, through a public offer.
According to a statement signed by the company’s secretary, Uto Ukpanah, and filed with the Nigerian Exchange Limited (NGX), the recent move is in line with MTN Group’s intent of selling down approximately 14% of its current shareholding in MTN Nigeria.
In addition, the popular telecommunications firm revealed that it will begin book-building this month for the public offer. It added that this month’s book-building exercise would target institutional investors, and will be subsequently followed by a fixed price for retail investors, which will be scheduled later this month.
It is pertinent to note that MTN Group has been exiting and reducing its stakes in some markets including Uganda and Zambian units. The South African based telecommunications giant listed its Nigerian business in Lagos two years ago, after which it became the second-largest stock by market capitalization.
Further details about the recent offer and ways to subscribe will be subsequently provided.
What you should know:
- It is estimated that MTN Group could rake in about N101 billion ($244 million) from the offer. As at the period of reporting this, MTN Nigeria share price gained about 2.51% to close at N180 per share at the local bourse.
- It is also important to note that MTN alongside Vodacom Group Limited, controls more than 70% of the South African mobile market in terms of subscribers.