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MTN spends R2.7bn on Nigerian stake

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 03 Oct 2006

Cellular group MTN is to take its stake in its Nigerian subsidiary to close on 82% by spending R2.693 billion.

In a statement, it said it would buy 6.98% from "certain minority shareholders". This takes its ownership of MTN Nigeria Communications to 81.87%.

"The acquisition will enable the minority shareholders to realise a portion of their investment in MTN Nigeria," says MTN president and CEO Phuthuma Nhleko.

"The acquisition is part of a process that will facilitate a broader spectrum of Nigerians to participate in the performance of MTN Nigeria."

MTN will pay $348.9 million - or, at R7.72 to the dollar - R2.396 billion for the stake, of which $287.8 million will be paid in cash and the remainder through the issue of six million shares.

MTN Nigeria, which launched operations in 2001, had a subscriber base of 9.6 million as of the end of June.

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