MTN Group Ltd plans to follow through with selling off part of their 79% shares to local investors.
MTN Group intends to reduce the bulk of its shares in the wireless carrier’s Nigerian business though the unrest accompanied by the coronavirus pandemic may have informed the sales in smaller bits than expected.
According to an interview with the Chief Financial Officer, Ralph Mupita, the effects of the pandemic virus on International Financial Markets doesn’t deviate the need to trade off part of its shares, regardless, the leftover of the three-to-five years plan will be left alone in the main time.
“In Nigeria we still want to do part of our retail offer, even if it’s a smaller part of the total planned sale,” Mupita disclosed.
“We are applying our minds to doing this at the moment, ” he also added.
Bloomberg reports that the telecommunications company selling off part of its shares is followed by a row of controversy between the company and Nigerian Authorities majorly because of tax payment and money withdrawal from Nigeria. However, the recent development in plans is to see that 15% of shares are sold out to local investors thereby lowering MTN’s ownership to about 64%.
Furthermore, it was recorded by Nigerian Communications Commission that the South-African based company is Nigeria’s most used telecommunication service provider, with almost 69 million customers; as MTN estimated for a third the total 2019 revenue and almost 40% of income before interest, taxes, depreciation, and amortization.
According to Mupita, the aftermath of the situation update cannot be specified but the company has a stable accounting transaction record that yields remarkably and also stating that most of their business transactions come from pre-paid contracts.
“We of course have no visibility on how all of this could play out, but the business currently has a resilient balance sheet and is highly cash generative, with most of our business coming from pre-paid contracts,” Mupita revealed.
Despite the influence of the coronavirus outbreak on the market, the telecoms company is out to ensure continuous stability and effectiveness as well as hoping for a wider coverage.
“We want to make sure that our networks have resilience and capacity,” Mupita said.
“We are looking at where we can drive broader coverage, ” he added.