MTN Group’s holding in Nigerian entity drops to 65% with public offer

 

By Guardian Nigeria

MTN Nigeria

MTN Nigeria Communications Plc has commenced a nationwide roadshow to engage interested retail investors in the on-going offer by MTN Group for shares in MTN Nigeria.

The first event of the roadshow was yesterday in Abuja.

This is as the 575 million shares the firm is offering Nigerian retail investors are expected to slash MTN Group’s holding in the Nigerian arm from 78 per cent to 65 per cent.

MTN Group Chairman, Mcebisi Jonas, and Group President and Chief Executive Officer, Ralph Mupita, attended the roadshow, which is being held on the sidelines of the state visit to the Federal Republic of Nigeria by South African President Cyril Ramaphosa. Both countries are also participating in the 10th Bi-National Commission.

Jonas said the offer to retail investors to buy shares in MTN Nigeria was a milestone: “We are delighted to be here to mark this momentous event and would like to express our thanks to the regulator and MTN Nigeria’s broader stakeholder base for their support over the years. MTN is a pan-African company which works to deepen inclusion and create shared value.”

Mupita said the MTN Group had made a clear strategic decision to build shared value across operations: “The best way we can do that is by enabling broad ownership in our operating companies. This offer is the first phase of that process in Nigeria, as we progressively reduce our shareholding from 78 per cent to 65 per cent over time. I am incredibly proud to be able to be here today, engaging directly with the Nigerian shareholders we hope will join us on the next phase of our journey.”

MTN Nigeria Chairman, Ernest Ndukwe, said the company’s success over the past 20 years would not have been possible without a supportive operating environment. “This MTN story is also a demonstration of the opportunity that Nigeria represents for investors,” he said.

MTN Nigeria CEO, Karl Toriola, said the offer had been structured to be available to as many Nigerian investors as possible.

“Today’s roadshow in Abuja is the first in a schedule that takes us to every state of the Federation over the next two weeks. It is really important for us to provide Nigerians across the country with the opportunity to engage with us as we build a shareholder base that is nationally representative,” he stated.

The offer, according to a statement by the Company Secretary, Uto Ukpanah, opened at 8:00am on December 1, 2021 and will close at 5:00pm on December 14, 2021. The minimum subscription is for 20 shares and lots of 20 shares thereafter. The offer includes an incentive in the form of one free share for every 20 shares purchased, subject to a maximum of 250 shares per investor. The incentive is open to retail investors who buy and hold the shares allotted to them for at least 12 months after the allotment date.

Investors are able to submit applications through the issuing houses, receiving agents (authorised stockbrokers and Nigerian banks) and online via a unique digital application platform, Primary Offer, administered by the Nigerian Exchange Limited.