MTN Nigeria To Launch Largest Private Placement (2007)


December 16, 2007 / Thirsday

NB: Private Placement documents not yet available to Proshare 

In a bid to give more Nigerians a sense of belonging, the MTN Group has launched a Private Placement that will give Nigerian Investors a chance to be part owners of MTN. 

A statement made available by the company disclosed that the Placement offer is part of the process to broaden the ownership of MTN Nigeria among   Nigerian nationals. 

The initiative according to the statement reaffirms MTN Group’s commitment to Nigeria and is one of the largest private placements undertaken in Nigeria by a multinational corporation to enable an   increased Nigerian shareholding, even though the details of the offer was not disclosed because of its confidential nature. The statement however added that the Private Placement will be completed during the first quarter of 2008. 

Mrs. Amina Oyagbola, MTN’s Corporate Services Executive, who emphasized MTN’s commitment to the provision of quality telecoms services to Nigeria reiterated that in the pursuit of this mission, more than USD1 Billion was allocated by MTN in 2007 to enable the provision of infrastructure necessary to improve the customer experience. 

She added that the amount is in addition to the recent $2billion loan syndication (about N240 billion) secured from a consortium of banks, to accelerate its network expansion. 

Network expansion on the MTN Network, she added is currently ongoing at perhaps the fastest pace ever in the history of Nigeria’s telecommunications industry, and is unprecedented in Africa . The pace will continue to improve. 

Mrs. Oyagbola enumerated the huge investments that the company has undertaken in the last twelve months to ensure that its customers enjoy seamless services in the near future. She said, in the last six months, we have increased our active sites to 3,573 from 2,775. She added that 500 base stations across the country had been upgraded to provide more capacity, whilst security at all its base stations has been increased to check the menace of vandalization of its facilities. 

In addition, the Board of MTN recently approved an additional USD1.3 Billion to support network roll out in 2008. The statement disclosed that all equipment required for 2008 roll out has been procured. 

Mrs. Oyagbola stressed that MTN is mindful of its obligations to its customers and continues to make all efforts to meet and exceed their expectations by investing and reinvesting in the country. She added that in the last twelve months, MTN has hugely invested in the economy to ensure that its customers enjoy seamless services in the near future.

She observed the company achieved its roll out targets, in spite of the practical difficulties associated with site acquisition, which potentially inhibit network growth and the dearth of skilled manpower. 

She also expressed a sense of satisfaction that the company had finally obtained approval for 47 sites in Abuja after a two year delay, and that MTN is currently making arrangements to co-locate its facilities in Abuja with other GSM operators.

Proshare Nigeria Pvt. Ltd.

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