MTN Nigeria to Offer 14.0% of MTN Mauritius Holding to Retail Investors


Wednesday, June 30, 2021 / 11:58 AM / By CSL Research / Header Image Credit: ET Telecom


Last week, the Chief Executive Officer of MTN Nigeria Communications Plc (MTNN), the leading player in the Nigerian telecommunication sector, reiterated the firm's plan to sell 14.0% of its group shareholding to retail investors. As of Q1 2021, MTN Mauritius held majority shareholding of the firm at 78.1%, followed closely by Institutional Investors with an aggregate holding of c.18.0%.


Recall that MTN got listed on the Nigerian Exchange Group by Introduction in 2019, meaning there were no new shares issued. At the time, the management of the firm committed to increasing retail ownership in the company when there is an appropriate market condition for the offer.


The CEO also noted that the management will ensure the completion of its three-year plan to deploy about N640bn to two critical areas: broadband acceleration in line with the National Broadband Plan and the connections of the remaining locations in Nigeria that do not have access to modern telecommunication services. MTN Mauritius (MTN Group) holds c. 78.1% of the firm's outstanding shares, while c.18.0% is held by Institutional Investors, a structure which hampers 'day-play' on the stock.


Operationally, MTN reported an excellent performance in Q1 2021, as it built on its strategic market standing and previous performances to post improved metrics across board. The firm retained its dominance of the Nigerian Telecommunication sector with 39.0% of the total subscribers within the space.


Revenue has also continued to improve, up 17.2% y/y to N385.1bn reported in the period. Similarly, Net Profit was up 42.5%y/y to N73.7bn in Q1 2021. We have a price target of N196.68/s and a BUY recommendation on the stock. Current price: N163.0/s.

Proshare Nigeria Pvt. Ltd.

Related News

  1. MTN Nigeria Assigned Highest Possible Credit Ratings by CGR, Outlook Stable
  2. MTN Nigeria Q1 2021 Results Review: Positive Earnings Outlook Post Solid Q1 Results
  3. MTN Nigeria Communication Plc Returns to FMDQ Exchange to Quote Additional Commercial Papers
  4. MTN Nigeria Issues First Telco Bond in Nigeria
  5. MTN Nigeria Series 1 Bond Issuance of Up to N100 Billion Now Open
  6. MTNN Clarifies Dispute Over the Reduction in Airtime Sales Commission Using Banking Channels
  7. MTN Nigeria Q4 2020 Result Review: Shares Looking Compelling Post Sell-off
  8. MTN Nigeria Communications Plc Series III and IV Commercial Paper Issuance Now Open
  9. MTNN Acquires Additional 800MHz Spectrum
  10. MTN Profit Skips Forward Slightly as Costs Take a Toll
  11. MTNN Declares N205bn PAT in 2020 Audited Results; Proposes N5.90K Final Dividend; (SP:N174.00k)

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.
Related News