New Telegraph

MTN begins sales of shares to Nigerians

Telecommunications giant, MTN Nigeria, is set to fulfil its promise of selling 14 per cent of its stake to Nigerian investors. The company yesterday announced a public offer for the sale of up to 575 million units of its shares. According to the company, the shares are to be sold by way of a bookbuild to institutional investors and fixed price to retail investors.

A bookbuild is a process through which a company generates, captures, and recordsinvestordemandwhen raising capital. The intention of this is to achieve the best price in the sale of the shares. Acheckonthecompany’s current structure showed that MTN Nigeria is 75.81 per cent owned by MTN International (Mauritius) Limited, 18.7 per cent by Nigerian shareholders through special purpose vehicles, 2.78 per cent by Mobile Telephone Networks NIC B.V, and 1.76 per cent by Public Investment Corporation SOC Limited.

“Today, we announced our intention to proceed with a public offer for sale of up to 575 million shares in MTN Nigeria, by way of a bookbuild to institutional investors and fixed price to retail investors. The offer is anticipated to open on or about 15 November 2021 with a bookbuild to institutional investors, after which a fixed price is expected to be announced for retail investors on 22 November 2021.

“The offer will close on or about 3 December 2021. This is the first step in our previously communicated statement of intent to sell down approximately 14 per centof MTNGroup’scurrent shareholding in MTN Nigeria,” MTN said in a statement signed by the Company Secretary, Uto Ukpanah. Earlier in June this year, the management of the MTN Group, the parent company of the Nigeria operation had announced plans to sell an additional 14 per cent stake in the company to Nigerians.

The MTN Group President, Ralph Mupita, who disclosed a visit of the group’s management’s visit to Nigeria said the company decided to allocate more shares to Nigerians to further demonstrate its commitment to the country. The MTN Group’s President revealed that the company wants to include more Nigerians in its ownership structure to enable at least two million Nigerians to have shares of the company. “We want to deepen our ownership structure in Nigeria. We will sell another 14 per cent to Nigerian individuals and institutions. We want to have the largest retail-based shareholding in Nigeria. We want at least 2 million Nigerian shareholders, deepening our roots in Nigeria,” he said.

Read Previous

‘2022 budget loaded with frivolities worth N227.1bn’

Read Next

5G: Telcos fret over N75bn licence reserved price

Leave a Reply

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