MTN Uganda launches public share purchase to broaden local shareholding and compliance 

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May 27, 2024
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2 min read
MTN signpost
  • MTN Uganda has announced an offer by MTN International (Mauritius) Limited for the secondary market purchase of up to 1,574,807,373 ordinary shares in MTN Uganda, representing a 7.03% stake in the company and including incentive shares.
  • According to the telco, the offer is made under MTN Group and MTN Uganda's goal of increasing Ugandan shareholding in the company. Additionally, the focus is on meeting regulatory requirements.
  • The offer is also open to the public from Monday, to pppppMay 27, 2024, to Monday, June 10, 2024. SBG Securities Uganda Limited is the lead sponsoring broker for the telco.

Notably, MTN International (Mauritius) Limited, the selling shareholder, is MTN Group Limited's wholly-owned subsidiary. In contrast, SBG Securities Uganda Limited is a wholly-owned subsidiary of Stanbic Uganda Holdings Limited.

MTN Uganda launched an initial public offering in October 2021, which concluded in November 2021. MTN Group reported that its Ugandan unit's initial public offering was undersubscribed, raising less than two-thirds of its target.

In 2018, Uganda requested that MTN Uganda list some of its shares on the local stock exchange to renew its operating licence, stating that Ugandans should be able to own a stake in the company.

Meanwhile, two months before MTN Uganda officially announced the start of the public sale, a March 2024 report revealed that the telco is confident in its operations in Uganda and may sell an additional 7% of the company to the public.

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Following the official announcement, the offer would allow Ugandan retail and professional investors and MTN Uganda customers to own shares in the company.

The telco stated that the minimum number of shares to be applied for is 1,400, but there is no maximum. Applications exceeding the minimum must be in multiples of 420 shares.

Qualifying investors can buy shares online through the USE Easy Portal or in person with licenced stockbrokers and trading members. Furthermore, the shares cannot be sold to investors in countries where the transfer would be illegal or unenforceable and to investors in sanctioned countries.

The telco also stated that at MTN Uganda's annual general meeting in May 2024, shareholders approved a final dividend payment of UGX 6.4 per ordinary share, totalling UGX 143.3 billion for the fiscal year ended December 31, 2023.

MTN's efforts to strengthen regulatory compliance in Uganda came two months after MTN Group appointed Mike Silber as its new group executive for regulatory matters, effective April 1, 2024.

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