More Africa NewsMTN raises ZAR4.3bn from Nigeria share sale

February 3, 2022by myles0

MTN Group has announced the successful completion of its Series 1 offer for the sale of 575 million shares in MTN Nigeria to local investors. The offer, which was implemented by way of a bookbuild to qualified institutional investors and a fixed price offer to retail investors, was 1.39 times oversubscribed with a total of 802.0 million shares subscribed for by more than 126,000 investors. A total of 661.25 million MTN Nigeria shares were allocated, comprising the 575 million offer shares and the 15% greenshoe of an additional 86.25 million shares. Gross proceeds from the offer amount to approximately ZAR4.3 billion (USD280.7 million).

MTN Group’s shareholding in its Nigerian unit has been reduced from 78.83% to 75.58%. A further maximum of 4.27 million MTN Nigeria shares (0.02%) will be allocated to qualifying retail investors who hold the shares allocated to them until 31 January 2023. The South African group said it will ‘continue its work to deliver on its stated intention of broadening the local shareholder base in MTN Nigeria, subject to market condition and regulatory approvals, with a goal to hold approximately 65% of the business in the medium-term’.

‘We are pleased that this offer has given so many Nigerians the opportunity to become owners of MTN Nigeria. With over 6.6 million Nigerians directly or indirectly becoming shareholders in MTN Nigeria, the objective of broadening the shareholder base, and creating shared value has been achieved,’ said MTN Group President and CEO Ralph Mupita, adding: ‘We thank the Nigerian authorities for their support of this offer. We remain committed to playing our humble role in driving digital and financial inclusion in Nigeria over the medium-term.’

Source: Commsupdate

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