MTN to Sell $729m Stake to Black Investors




South African mobile phone company MTN Group will sell
shares worth 9.9 billion rand ($729 million), a 4 percent
stake, to black investors to meet government quotas on
black ownership.
Africa’s biggest telecoms firm said the new black economic
empowerment deal would be launched via a public offer next
month to replace an existing scheme that is due to unwind
in November.
Under black economic empowerment rules, South African
companies are encouraged to meet quotas on black
ownership, employment and procurement as part of a drive
to reverse decades of exclusion under apartheid.
Meeting government rules on black ownership makes a
company more likely to qualify for government tenders.
MTN said it will sell the shares at 102.80 rand – a nearly 20
percent discount to Friday’s closing price. If fully
subscribed, the offer, along with the existing scheme, will
give black investors more than 30 percent of the company’s
South African operations, reports Reuters.

About Dunio Mabushi

0 comments:

Post a comment