COVID-19 ‘forces’ MTN Group to offer 15% stake for sale to subscribers in phases
- The MTN Group is in the process of selling 15% of its operations in Nigeria, which is its biggest market
- According to the company, the decision follows constant challenges with the Nigerian government
- It intends to offer the sale in bits due to the outbreak of the coronavirus
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MTN Group has announced its plan to sell 15% of its business in Nigeria to subscribers.
The company revealed that the move is in line with a plan to reduce its presence in the West African country.
According to MTN’s Chief Financial Officer, Ralph Mupita, the company wishes to embark on the sale because of the numerous challenges with the government over the years.
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The Nigerian government recently asked the company to return all improperly accrued funds and pay $2 billion in backdated taxes.
The request comes almost a year after MTN listed the unit on the country’s stock exchange, valuing the business at $5 billion at the time.
Per a report by Business Insider, Mupita added that the sale would be pursued in phases as a result of the outbreak of the COVID-19.
YEN.com.gh understands that the Nigerian arm of the group is its largest component.
Mupita further explained that the company has been readying itself for an increase in data use since more markets are undergoing lockdowns.
He stated that the MTN wishes to ensure that its networks are resilient and have the capacity to have broader coverage.
Meanwhile, MTN has reported an increase in revenue for the year ended December 2019.
On Wednesday, March 11, 2020, the group revealed details of the results amid macroeconomic challenges in South Africa, where it is headquartered.
The company also announced that Rob Shuter, who serves as president and Chief Executive Officer (CEO), would not renew his contract after March 2021.
There are succession plans in place to ensure a seamless handover after Shuter leaves office.
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Source: YEN.com.gh
