MTN Proceeds With Plan To Sell R3.7 Billion Worth of Shares in Nigeria

• MTN announced today that they will be selling 575 of their shares in Nigeria, which are worth R3.7 million
• The telecommunications operator has seen a sharp increase in revenue and subscribers in the last quarter
• People have expressed mixed reactions to this, with some applauding MTN and others not wanting the company to exit Nigeria

NAIROBI - The MTN group has decided to go ahead with their plan to sell their shares in Nigeria, worth R3,7 billion.

MTN is the largest telecommunications operator in South Africa. They announced earlier today that they would proceed in selling their 575 shares in Nigeria through a public offer.

According to SABC News, MTN has already begun exiting other countries, such as Zambia and Uganda, due to the separation between fibre and fintech assets.

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MTN's latest figures and their effect

News24 reports that MTN shares rose nearly 3.6% this morning on the Johannesburg Stock Exchange (JSE), and they are the best performing shares on the exchange at 138% growth in the past year.

MTN has reported a 19% increase in profit in the last quarter due to data and fintech sales. The operator also currently has 271.9 million subscribers, following a rise of 0.2 million subscribers in the third quarter.

“In South Africa, rising unemployment is a concern and may impact growth from prepaid customers in the lower-income segment in the near-term, if measures such as the temporary employee relief scheme are withdrawn,” the company said.

Reactions to MTN share sale

People have tweeted their opinion on MTN proceeding to sell their shares in Nigeria. Here is what some people had to say:

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@MapetulaMohlal1 said:

"Great strategy!"

@regina_zhou believes:

"this is terrible news"

@Rudzani_cogitat shared:

"Once MTN exits, we won't be held to ransom by the Nigerians."

Citizens call for MTN boycott

Previously Briefly News reported on MTN inciting a movement against them over high data prices.

MTN has Mzansi buzzing this weekend, and the hype is far from flattering as customers voice their dismay. The Competition Commission had slammed South African service providers for the 'anti-poor' high costs of data in the country.

This point has alluded consumers, who took to social media under the banner of the #NoRechargingForMTN. The concept is that by refusing to recharge the company would be forced to heed the calls of its clients and reduce the current pricing.

Source: Briefly News