More Africa NewsMTN says plans to sell 14% stake in Nigerian unit are ‘well advanced’

June 29, 2021by myles0

MTN Group has revealed that plans to sell a 14% stake in its Nigerian unit to local investors are ‘well advanced’. The South African firm, which holds 78.8% of MTN Nigiera, added that the process would commence as soon as market conditions are conducive. TeleGeography’s GlobalComms Database states that in June 2016 MTN Nigeria committed to listing a portion of its shares on the Nigeria Stock Exchange (NSE) as part of a settlement arrangement with the Nigerian government regarding a NGN330 billion (USD800 million) fine. The listing was initially expected to take place during 2017 but was delayed due to regulatory and macroeconomic issues; it eventually took place on 16 May 2019 via a ‘listing by introduction’. Eventually, MTN intends to follow this with a public offer once market conditions are favourable. Over time, MTN Group anticipates that local ownership will increase from around 20% to 35%, although in March 2020 it hinted that its sale of a roughly 15% stake may have to be carried out in phases due to the COVID-19 pandemic and a slump in oil prices.

Source: Commsupdate

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