South African Investors Buy Stake in MTN's Nigerian Subsidiary
Published on: 28th Nov 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
The South African investment holding company Shanduka Group says that it has purchased a minority stake in MTN Nigeria. Shanduka acquired its stake from three private investors for a total cost of US$335 million.
MTN Nigeria is currently the largest mobile operator in Nigeria with 45.64 million active subscribers at the end of September 2012, and an estimated market share of approximately 48%.
The company is an indirectly held subsidiary of South Africa's MTN Group, which holds an effective 78.83% stake.
The transaction is the largest investment Shanduka has made outside South Africa. It forms part of the group's strategy to invest in key sectors in growing African markets.
Shanduka Group CEO Phuti Mahanyele said: "This is Shanduka's most significant investment in another African country. It is a business that is well established within a market that has great potential for further growth. Shanduka will continue to pursue opportunities in other parts of Africa."
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