MTN is considering, among other alternatives, the possibility of listing subsidiary MTN Nigeria.
The cellular network operator says it has decided, in association with MTN Nigeria shareholders, to explore ways of broadening the base of local shareholder participation in the subsidiary.
"Over the next 12 months, substantial groundwork will be done to explore various options to achieve this objective," the group says.
"Alternatives under consideration may include a potential listing of MTN Nigeria within the next 12 months, subject to market conditions."
However, it says it has not yet entered into discussions or negotiations with potential investors that may lead to a deal being struck.
"This move reaffirms our commitment to sustainability and good corporate citizenship, which includes local empowerment in all our operations," says Yvonne Muthien, MTN group executive, corporate affairs.
MTN Nigeria reported a subscriber base of about 2.18 million at the end of June.
The announcement failed to inject optimism into the market, with the MTN share losing 55c or 1.9% to end at 2 855c on the JSE yesterday.
An analyst says the news is unlikely to make a real impression on the market until details are announced, which the group has promised as the process unfolds.
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