MTN Increases Nigerian Investment

South Africa's MTN Group has announced that it would acquire a further 6.98% interest in its subsidiary, MTN Nigeria, from certain minority shareholders. The total purchase consideration of US$348.9 million will be funded through a cash payment of US$287.8 million and a share issue. The purchase will be effected through MTN's wholly-owned subsidiary, MTN International and will bring the MTN Group's shareholding in MTN Nigeria to 81.87%.

MTN Nigeria launched operations in 2001 and is the leading GSM operator in Nigeria, with a subscriber base of 9.6 million as at 30 June 2006. MTN Nigeria's GSM network comprises over 2,336 base stations and an extensive transmission infrastructure, providing access to approximately 73% of Nigeria's population.

"The acquisition will enable the minority shareholders to realise a portion of their investment in MTN Nigeria," says MTN President and Group CEO Phuthuma Nhleko. "The acquisition is part of a process that will facilitate a broader spectrum of Nigerians to participate in the performance of MTN Nigeria."

The Mobile World subscriber database reports that MTN Nigeria ended the first half of this year with a little over 9.6 million customers - equating to a market share of around 40%."

Posted to the site on 4th October 2006