MTN announces secondary share sale to boost local ownership

Business -->
MTN announces secondary share sale to boost local ownership
Sylvia Mulinge

MTN Uganda has launched a secondary market sale of up to 1,574,807,373 ordinary shares, starting on May 27, 2024, and concluding on June 10, 2024.

Managed by SBG Securities Uganda Limited, the offer is priced at Shs170 per share, with a minimum application of 1,400 shares and increments of 420 shares.

This initiative aims to increase Ugandan ownership and comply with national regulations.

"This offer presents a significant opportunity for Ugandan retail and professional investors, including our loyal customers, to own a stake in MTN Uganda and participate in our future growth," stated Sylvia Mulinge, chief executive of MTN Uganda.

"This initiative supports our strategic goals and aligns with national telecommunications and broadband policies." she added

MTN Uganda was listed on the Main Investment Market Segment of the Uganda Securities Exchange (USE) on December 6, 2021, following an initial public offer (IPO).

The current offer, representing a 7.03 percent stake in the company, aligns with MTN Group and MTN Uganda's goal to broaden Ugandan shareholding.

It also fulfills the requirements of the national telecommunications operator license, the National Broadband Policy 2018, and regulations by the Uganda Communications Commission.

To encourage participation, MTN Uganda offers an incentive: for every 140 shares purchased, 30 additional shares will be transferred at no cost.

Professional investors must hold their shares for six months to maintain market stability.

Investors need a Securities Central Depository (SCD) account to participate, and applications can be made electronically via the USE Easy-Portal or physically through licensed stockbrokers.

In case of oversubscription, priority will be given to Ugandan and East African retail investors.

To facilitate this offer, trading in MTN Uganda shares will be suspended from May 27, 2024, to June 12, 2024.

MTN Uganda is also focused on its Ambition 2025 strategy, which aims to build the largest and most valuable platform business in Africa.

This includes the separation and consolidation of its financial technology and infrastructure businesses.

At the annual general meeting on May 22, 2024, MTN Uganda declared a final dividend of Shs6.4 per share, payable on June 25, 2024, to shareholders registered by June 12, 2024.

"Our Ambition 2025 strategy will drive value for our shareholders and foster greater investor engagement," emphasized Mulinge.

"We are committed to ensuring equitable treatment of all shareholders through transparent and strategic initiatives."

This secondary market sale presents a unique opportunity for Ugandan investors to engage with MTN Uganda’s growth and strategic direction.

Reader's Comments