MTN reducing stake in Nigerian business slowed by Covid-19

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The fallout from the Covid-19 pandemic doesn’t change the importance of selling part of the 79% shareholding to local investors, says CFO

MTN will push on with a plan to reduce its majority stake in the wireless carrier’s Nigerian business, though turmoil caused by the coronavirus may require the sale to be done in smaller chunks than anticipated.

“In Nigeria we still want to do part of our retail offer, even if it’s a smaller part of the total planned sale. We are applying our minds to doing this at the moment.” MTN Nigeria Communications was listed in Lagos last year, and is the country’s second-biggest publicly traded company. Nigeria is MTN’s biggest market, accounting for a third of overall 2019 revenue and almost 40% of earnings before interest, taxes, depreciation and amortisation .

The drastic fall in oil prices, hurting major producers including Nigeria, and the outbreak of the coronavirus has weighed on MTN’s share price, which hit 15-year lows last week. The stock has since rallied for six straight days, and closed 17.93 % higher at R47.88.

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