MTN says it has raised R4.3bn through an oversubscribed sale of its shares in MTN Nigeria, a move aimed at broadening its shareholder base in that country.
The sale of 802-million shares was 1.2 times oversubscribed, Africa’s largest mobile operator said, with the offer reducing the group’s shareholding in MTN Nigeria to 75.6% from 78.8%.
A total of 126,000 investors subscribed, MTN said on Tuesday, which includes Nigerian retail and institutional investors, where participating Nigerian pension funds represent about 6.5-million people.
MTN’s fortunes appear to have turned for the better in recent years.
MTN Nigeria is the group’s most lucrative market, accounting for about a third of total revenue, but the mobile operator has had its challenges in the oil-rich country, notably clashes with regulators.
In December 2018 the company resolved a dispute over $8.1bn that Nigeria’s central bank said the firm had sent abroad in breach of foreign exchange regulations, with the group paying $52.6m without admitting liability.
In a separate matter, MTN negotiated down a $5bn fine related to unregistered SIM cards, which was reduced to $1.7bn.
Last year, Nigerian capital markets watchdog approved plans for MTN to offer more shares to local investors with initial estimates that the deal could land the group R4bn, which has been surpassed.
“We are pleased that this offer has given so many Nigerians the opportunity to become owners of MTN Nigeria,” MTN group president and CEO Ralph Mupita said in a statement on Tuesday.
“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,” he said.
MTN said it would continue its work to deliver on its stated intention of broadening the local shareholder base in MTN Nigeria, subject to market conditions and regulatory approvals, with a goal to hold about 65% of the business in the medium term.
By close of trade on Tuesday, MTN’s shares were down a marginal 0.17% at R191.80, having leapt 10.2% on Monday, when it said growth in mobile payments in Nigeria strengthened its case to set up a bank in the country.
MTN Nigeria had reported that mobile money service users rose 102% to 9.4-million for the full-year to end-December 2021.
MTN also secured a 5G spectrum licence in Nigeria, one of two operators to do so in December.
Update: February 1 2022
This story has been updated with closing share data and other information throughout.
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