MTN Group has reported securing regulatory approval for a public offer of ordinary shares in its Nigerian subsidiary.
The Nigerian Securities and Exchange Commission (SEC) approved an offer for sale of up to 575 million ordinary shares in the company by way of a book-build to qualified institutional investors and a fixed price to retail investors.
The institutional offer opens on 23 November 2021 and closes at 3pm South African time on 26 November, after which a fixed price will be determined for the retail offer.
“The retail offer is proposed to open after the institutional offer, and an announcement will be published in this regard once clearance is obtained from the SEC,” MTN said in a statement.
“This is the first step in a series of offers over the near to medium term for MTN Group to sell down a total of up to 14% shareholding in MTN Nigeria. This should result in greater ownership by Nigerian institutional and retail shareholders, and increased liquidity of the share on the Nigerian Stock Exchange,” said group CEO Ralph Mupita in the statement.
MTN Group currently holds 78.8% of MTN Nigeria, meaning its shareholding could be reduced to 64.8% as part of this process.