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MTN To Proceed With Sale Of 575 Million Shares

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MTN Commence Payment Of Dividend To New Shareholders

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MTN To Proceed With Sale Of 575 Million Shares

MTN Nigeria Communications Plc has announced that it is set to proceed with a public offer for the sale of 575 million shares.

According to a statement by the company, it was noted that its parent company, MTN Group, is set to proceed with this sale by means of a bookbuild to institutional investors and a fixed price to retail investors.

It said “The Offer is anticipated to open in November 2021 with a bookbuild to institutional investors, after which a fixed price is expected to be announced for retail investors also in November 2021.

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“The offer is expected to close in December 2021. This is the first step in MTN Group’s previously communicated statement of intent to sell down approximately 14 percent of its current shareholding in MTN Nigeria.”

The company also said that it successfully completed the issuance of its N89.99bn series II 10-year 12.75 percent fixed-rate bonds due 2031 under the N200bn bond issuance programme.

The telecommunications company disclosed this in a statement titled ‘MTN Nigeria issuance of N89.999bn series’.

It said the bookbuild process commenced on October 8, 2021, and was completed on October 15, 2021.

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The firm said the offer was well received with active participation from a diverse range of high-value investors, including pension funds, insurance companies, asset managers, financial institutions, and high net worth individuals.

It added that during the bookbuild, the total value of subscriptions received peaked at N133.45bn, representing a 1.48 times oversubscription.

As a result, the series II bond was launched at a clearing coupon of 12.75 percent with N89.99bn in qualified bids, according to the statement.

The Chief Executive Officer, MTN Nigeria, Karl Toriola, 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 our investments in our network.

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“In line with our strategy, the bonds issued this year enable us to diversify our funding sources and extend the maturity profile of our 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.”

The Managing Director, Chapel Hill Denham, Kemi Awodein, said, “We are delighted to have led and completed MTN Nigeria’s N200bn bond issuance programme with the pricing of the N89.99bn Series 2 bonds. MTN Nigeria’s strong credit story has underpinned what have been two oversubscribed issuances in tricky market conditions this year.

“Chapel Hill Denham acted as lead manager and bookrunner on the MTN debut and follow on issuances of the first bonds issued by a Nigerian telecommunications operator further broadening Nigeria’s capital markets.”

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MTN To Proceed With Sale Of 575 Million Shares

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