MTN Group has announced plans to further reduce its shares in MTN Nigeria by over 10% as it seeks to broaden the local shareholder base, and attract new investors to fuel expansion plans.
Currently, MTN Group has a 75.6% stake in MTN Nigeria and it is now working on regulatory approvals to reduce that down to 65% in the medium term.
In early February, the Group raised R4.3 billion ($285.2 million) through an oversubscribed sale of its shares in MTN Nigeria, a move aimed at broadening its shareholder base in that country.
The sale of 802-million shares was 1.2 times oversubscribed by more than 126,000 investors, with the offer reducing the group’s shareholding in MTN Nigeria to 75.6% from 78.8%.
The investors included Nigerian retail and institutional investors, where participating Nigerian pension funds represented 6.5 million Nigerian contributors,
Nigeria is MTN’s most profitable and biggest market out of the telco’s continental footprint, followed by South Africa.
MTN Group Limited is a South African multinational mobile telecommunications company, operating in many African and Asian countries. Its head office is in Johannesburg. As of December 2020, MTN recorded 280 million subscribers, making it the 8th largest mobile network operator in the world, and the largest in Africa. Active in over 20 countries, one-third of the company’s revenue comes from Nigeria, where it holds about 35% market share.
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