MTN Rwanda has announced plans to list on the Rwandan Stock Exchange in 2021. The company will list by way of introduction, joining ten other firms listed on the exchange.
The listing will open up 20% of the company’s stake owned by Crystal Telecom to be traded by the public. Currently, MTN Group owns 80% of MTN Rwanda while Crystal Telecom Limited holds the remaining 20%. MTN Group will retain its majority shareholding even though 100% of the shares will be listed on the Rwanda Stock Exchange.
Speaking on the listing, MTN Rwanda CEO says the listing reaffirms the company’s commitment to Rwanda.
“The listing reaffirms our commitment to Rwanda. This is a transformative event in the MTN story, and one that we are certain we could not have reached without the support of our stakeholders, partners and customers,” he said.
Crystal Telecom Boards Proposes a Share Swap for MTN Rwanda Shares
The board of Directors at Crystal Telecom recommended a share swap, where current CTL shareholders will become shareholders at MTN Rwanda. The share swap ratio will be 1:1, subject to approval by 75% of Crystal Telecom shareholders in an Extraordinary shareholders meeting, upon successful listing on MTN Rwanda.
Upon listing of MTN Rwanda, Crystal Telecom will delist from the Rwandan Stock exchange as it will not meet the threshold for minimum shareholders.
“The Board therefore recommends that the company be delisted from the RSE immediately after completion of the share swap process. This recommendation shall be subject to the approval of 75 per cent of CTL shareholders in the EGM to be held on a date in accordance with the Mermarts on the provisions related to notice period or any such waiver granted by CMA (Capital Markets Authority).” said the board.
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