Museveni hails MTN on move to sell 20% of its shares to the public
President Museveni has described as important, the recent decision by telecom giants MTN to float 20% of its shares on the Uganda Securities Exchange.
The president said the move will allow Ugandans and Africans to be partners in all the activities of the company.
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“Localisation is very important. It removes nationalism in business where all people become partners,” he said.
The president also congratulated the leadership of MTN for the strategy including that of the expansion of services to the rural areas as well as in business promotion.
Museveni was on Wednesday MTN Group officials led by the chairperson of the board Mcebisi Hubert Jonas who called on him at State House Entebbe.
Other members of the group included the CEO Ralph Mupita and the officials of MTN including Yolanda Cuba, Wim Van Helleputte(MTN Uganda CEO), and Charles Mbire.
The Minister of State for ICT and National Guidance Kabyanga Godfrey as well as Uganda Communications Executive Director Irene Kaggwa also attended the meeting.
MTN Uganda recently announced its intention to proceed with an initial public offer (IPO) and subsequently list on the Uganda Securities Exchange (USE).
According to the telecom company, the move follows the requisite approval by the Capital Markets Authority and Uganda Securities Exchange for MTN Group to sell 20% of its shareholding in MTN Uganda to the public.
MTN Group owns 96% of MTN Uganda.
The listing is in line with the group’s strategic priority to create shared value, partly through ensuring broad-based ownership in its operating subsidiaries.
It is also in line with the provisions of MTN Uganda’s National Telecom Operator(NTO) licence, which requires its listing by end-June 2022.
The chairperson of MTN Mcebisi informed Museveni that they have made tremendous progress in the localization strategy that will see Ugandans acquire shares as the company aims at ensuring that MTN is owned by the people of Uganda.
“The localization process has started to ensure that MTN is owned by Ugandans. The overall new strategy is that as a company, it is owned by Africans,” he said.
He further announced that key positions are currently manned by Ugandans including that of CEO MTN in South Sudan.
He also said that MTN is committed to stay in Uganda and is set to invest US$ 300 million in the next 3 years.
The chairperson also promised to contribute vaccines against COVID-19 pandemic as well as roll out services to the people in rural areas.
