KEY POINTS

• MTN plans to reduce its stake in Nigeria to 65 percent.

• The second public offer follows a successful 2021 share sale.

• MTN Nigeria needs to resolve negative equity before the offer.

MTN Group has announced plans to reduce its shareholding in MTN Nigeria through a public offer after it returns to profitability.

The group aims to cut its stake from 76 percent to 65 percent, in line with its longstanding commitment to deepen local ownership. Ralph Mupita, MTN Group president, disclosed the plan during an editors’ roundtable meeting this week, as reported by the South African tech publication ITWeb.

“The only localisation we have as MTN Group is we have potentially a sell-down in Nigeria at some point in time, approximately 11 percent. This is something we have said long ago, that over time, we would want more Nigerians owning the company, and we are prepared to sell down to 65 percent. We are at around 76 percent,” he said.

Second retail public offering planned

The anticipated offer would mark MTN’s second major retail public offering in Nigeria, following its 2021 sale of 575 million MTN Nigeria shares to local investors.

That offer was oversubscribed, resulting in the allocation of 661.25 million shares, including a 15 percent greenshoe option. This reduced MTN’s stake in its Nigerian unit to 75.6 percent from 78.8 percent.

More than 126,000 investors participated in that round, including retail and institutional investors such as Nigerian pension funds, representing approximately 6.5 million contributors.

At the time in 2022, MTN Group announced plans to further reduce its stake to approximately 65 percent from 75.6 percent.

MTN Nigeria to resolve negative equity before public offer

Mupita confirmed that the Group would only proceed with a new offer once MTN Nigeria resolves its negative equity position and resumes dividend payments.

Currently, MTN Nigeria’s shares are trading at N235 per share. Despite reporting a revenue of N3.36 trillion in 2024, a 36.03 percent bump from N2.47 trillion in 2023, it posted a loss after tax of N400.44 billion, a 192.25 percent rise from N137.02 billion in 2023.

This negative performance was driven by macroeconomic headwinds, including record inflation and a steep devaluation of the naira, which raised operating costs and wiped out investor value.

According to BusinessDay, MTN Nigeria has fallen behind MTN South Africa as MTN Group’s largest revenue contributor. However, the Group is projecting a rebound in 2025, citing key drivers such as recent tariff adjustments, operational restructuring, and improving macroeconomic indicators in Nigeria.