The MTN Group on Monday revealed that plans to sell a 14% stake in its Nigerian unit to local investors are ‘well advanced’.
The South African firm, which holds 78.8% of MTN Nigeria, added that the process would commence as soon as market conditions are conducive.
In June 2016, MTN Nigeria committed to listing a portion of its shares on the Nigeria Stock Exchange (NSE) as part of a settlement arrangement with the Nigerian government regarding a N330 billion fine.
The listing was initially expected to take place during 2017 but it was delayed due to regulatory and macro-economic issues.
It eventually took place on May 16, 2019 via a ‘listing by introduction’.
MTN intends to follow this with a public offer once market conditions are favourable.
Over time, MTN Group anticipates that local ownership will increase from around 20% to 35%; although in March 2020, it hinted that its sale of a roughly 15% stake may have to be carried out in phases.
MTN attributed this to the COVID-19 pandemic and a slump in oil prices.