Technology Times Editors dig into our news archive and we are pleased to share this news story from November 29, 2012 for your reading delight:
Lagos. November 29, 2012: South Africa’s MTN Group has sold stakes in its Nigerian subsidiary to Shanduka Group in a deal totaling $335 million.
Shanduka Group chaired by Cyril Ramaphosa, who is also Chairman, MTN Group, says the minority stakes were acquired from three unnamed investors through its wholly-owned subsidiary, Shanduka Telecommunication (Mauritius).
Shanduka says the deal is the largest investment made by the group outside South Africa hoped to grant it access into the Nigerian telecoms market which counts over 105 million active phone connections.
With some 78.83%, MTN Group holds effective control of MTN Nigeria which 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%.
Commenting on the deal, Phuti Mahanyele, CEO, Shanduka Group says, “It forms part of the group’s strategy to invest in key sectors in growing African markets. It is an indication of Shanduka’s confidence in Nigeria as an important investment destination.”
The investment was facilitated and supported by Standard Chartered, which acted as joint financial advisor and mandated lead arranger, the company says.
“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”, Mahanyele adds.
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