MTN Uganda has made public an offer by MTN International (Mauritius) Limited to purchase up to 1,574,807,373 ordinary shares of the company on the secondary market.

This amount represents a 7.03% ownership in the business and includes incentive shares.

The telecom claims that the offer is being made to further MTN Group and MTN Uganda’s objective of raising Ugandan business ownership. The fulfilment of regulatory criteria is also a priority. Additionally, the public may take advantage of the offer from Monday, May 27, 2024, to Monday, June 10, 2024.

Read also: MTN, others unveil $12 Billion investment in Africa’s digital infrastructure

The telecom company’s principal sponsoring broker is SBG Securities Uganda Limited. MTN Group Limited’s wholly-owned subsidiary is MTN International (Mauritius) Limited, the selling shareholder.

MTN Uganda’s IPO Fails, Expands Local Ownership

On the other hand, Stanbic Uganda Holdings Limited wholly owns SBG Securities Uganda Limited. October 2021 saw the start of MTN Uganda’s first public offering, which ended in November 2021. Less than two-thirds of MTN Group’s aim was raised at its Ugandan unit’s undersubscribed initial public offering.

To renew its operating licence, Uganda asked MTN Uganda to list some of its shares on the local stock exchange in 2018. Uganda said that its citizens ought to be able to own equity in the company. A March 2024 article stated that MTN Uganda is optimistic about its activities in Uganda and may offer the public an extra 7% of the company two months before it formally commences the public sale.

MTN Uganda rewards local investors UGX 6.4 per share

Shares in the company could be owned by MTN Uganda customers as well as professional and retail investors in Uganda after the official announcement.

Read also: MTN 2024 Scholarship opens for deserving students

According to the telecom, no maximum number of shares can be applied for, but 1,400 is the minimum. Applications beyond the required minimum must be submitted in batches of 420 shares.

Investors who meet the requirements can purchase shares in person from authorised stockbrokers and trading members or online via the USE Easy Portal. Moreover, the shares cannot be sold to investors in sanctioned nations or countries where the transfer would be unlawful or unenforceable.

The telecom added that shareholders authorised a final dividend payment of UGX 6.4 per ordinary share, or UGX 143.3 billion, for the fiscal year that concluded on December 31, 2023, at MTN Uganda’s annual general meeting in May 2024. Two months after Mike Silber was named by MTN Group as its new group executive for regulatory matters, effective April 1, 2024, MTN initiated steps to improve regulatory compliance in Uganda.