The corporate action marks the first time the local unit of
Johannesburg-based MTN Group will welcome subscription from the public roughly
two and a half years after it debuted on the Nigerian Exchange Limited (NGX) by
way of introduction.
The offer window closes in December.
“This is the first step in MTN Group’s previously
communicated statement of intent to sell down approximately 14 per cent of its
shareholding in MTN Nigeria,” the wireless carrier told the NGX.
MTN Nigeria shares, listed in Lagos, have returned 19.46 per
cent in the last one year as of 09:54 WAT on Thursday.
The Nigerian sale comes as MTN looks to finalise a
sale-and-lease back of its South African telecom-mast portfolio and list shares
in the Uganda operation in Kampala. The company also netted some proceeds from
the initial public offering of towers firm IHS in New York last month.
MTN said third-quarter service revenue gained by 19%, driven
by data and fintech sales. But its subscriber growth slowed to just 200,000 in
Q3 in Nigeria, with the group adding 1.6 million subscribers in the Q3,
excluding Nigeria.
“As more of MTN’s enrolment centres in Nigeria are certified
for SIM registration in line with the current regulations, we expect positive
net additions to resume during Q4 2021,” MTN said.
At the hour of the announcement, MTN shares rose as much as
3.6% in Johannesburg, South Africa capital. This amounts for the most in almost
a month.
Prior to that, MTN stock surged 138% this year, the best
performer on the FTSE/JSE Africa Top40 Index, as investors cheer various
cash-raising exercises.
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