MTN Gets SEC’s Approval for 575 Million Shares Offer for Sale

0

Emma Okonji

MTN Nigeria Communications Plc (MTN Nigeria), yesterday disclosed that the Securities and Exchange Commission (SEC) has approved an offer for sale of up to 575 million ordinary shares in the telecommunication company held by MTN International (Mauritius) Limited.

The offer for sale would be executed by way of a bookbuild to qualified investors also known as institutional offer and a fixed price to retail investors (retail offer).

MTN Nigeria disclosed this in a statement signed by its Company Secretary, Uto Ukpanah.

According to the statement, the institutional offer opened at 12.00 noon on 23 November, 2021, and would close at 2.00pm on 26 November, 2021, after which a fixed price would be determined for the retail offer.

It further stated that the retail offer was proposed to open after the institutional offer, and MTN promised to make further announcement and publish same after obtaining clearance from the SEC.

MTN Nigeria is one of Africa’s largest providers of communications services, connecting approximately 68 million people in communities across the country with each other and the world.

Guided by a belief that everybody deserves the benefits of a modern connected life, MTN Nigeria’s leadership position in coverage, capacity and innovation has remained constant since its launch in 2001.

MTN Nigeria had earlier disclosed the successful completion of the issuance of its N89. 9 billion Series II 10-Year 12.75 per cent Fixed Rate Bonds due 2031, known as “Series II Bond”, under the N200 billion Bond Issuance Programme.

The Series II Bond was the second issuance in 2021 by MTN Nigeria following the successful debut in May 2021.

It completed MTN Nigeria’s N200 billion bond issuance programme, which was fully subscribed.

According to MTN, the successful bond issuance reflected MTN Nigeria’s strong credit ratings, which was recently upgraded to AAA, investor confidence in its ability to maintain market leadership in the telecoms industry, and the depth of the domestic capital market.

The net proceeds was expected to be used to optimise MTN Nigeria’s capital structure and finance network expansion.

Commenting on the bond issuance, the Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola had said: “We continue to be grateful for the immense investor support, as the domestic debt capital market has yet again given us the opportunity to raise long-term financing to aid investments in our network.

“In line with the company’s strategy, the bonds issued this year enable us to diversify funding sources and extend the maturity profile of the company’s debt portfolio.

“We are very proud of this landmark transaction and thank the investor community for their continued confidence in MTN Nigeria’s long-term strategy, our management team, and the overall telecoms industry.”