MTN has initiated the sale of shares in its subsidiaries to local investors, notably in Ghana, Uganda, and Nigeria. In the latter country, the group had already sold 575 million shares in 2021.

MTN Group is seeking to sell an additional 11% stake in its Nigerian subsidiary to local investors. The process, which is expected to begin with a public offering, will reduce its stake in the subsidiary from 76% to 65% if it is completed.

The telecoms company is looking to expand its local stake in its subsidiaries in Nigeria, as well as in Uganda and Ghana. In 2021, the company completed the sale of 575 million shares in MTN Nigeria, seeing its stake drop from 78% to 76%.

While no specific timeline has yet been provided, Group Chairman Ralph Mupita indicated that the offer will be launched after MTN Nigeria’s financial situation, which is struggling with a complicated macroeconomic environment, has stabilized. The company estimates that the average inflation rate climbed to 33.1% in fiscal year 2024, compared to 24.5% in 2023. It added that the naira traded at an average of 1,508 naira per US dollar in 2024, compared to 598 naira per dollar in 2023.

In 2024, MTN Nigeria posted revenues of N3.36 trillion (USD 2.1 billion), up 36.1% from 2023. However, the company recorded a net loss of N400.43 billion, a 192.25% decline from the N137 billion net loss recorded in 2023. For 2024, the MTN Nigeria Board of Directors has not recommended dividend payments to shareholders.

“As we continue to address challenges in our operating environment, including high inflation and unpredictable foreign exchange markets, we will continue our efforts to drive sustainable growth and strengthen our operational resilience. […] However, short-term uncertainties in our macroeconomic environment, including the exchange rate and possible price elasticity related to the implementation of the new tariff, may influence the trajectory of our recovery. We will closely monitor developments and keep our stakeholders informed accordingly, as we pursue our growth ambitions ” MTN Nigeria said in its 2024 annual report.

Source: Agency EcoFin