Mobile operator MTN has increased its stake in its Ugandan operation by buying out a 13% stake for R384.7 million.
In a statement released on Monday, the cellular firm said it now owns 97.34% of MTN Uganda. It purchased a 12.98% stake from Rwanda-based investment holding company Tri-Star Investments for $55 million in cash, it said.
Executive VP for the Middle East, North and East Africa region Irene Charnley commented that the Ugandan operation was now a fully-consolidated subsidiary of the group. "We are confident the operation will continue to play a critical role in our efforts to consolidate our position in the East Africa region."
Earlier this month, the company increased its Ugandan shareholding to 84.44% from 52.01%, after acquiring a 32.44% stake from Sweden`s Overseas Telecom for EUR130 million, or R1.19 billion.
MTN`s latest annual results, which are for the nine months ended December 2005 as it moved its reporting period, said MTN Uganda had contributed $134 million in revenue. At that stage, MTN had a 52% shareholding in the operator, which had a market share of 63% in a country with 26.9 million people.
MTN invested $36 million in network infrastructure in the nine-month period ended December 2005 in the operator, which had 1.1 million subscribers at the end of March. The provider has also been awarded a government tender to provide infrastructure for universal service in the eastern and western regions of the country.
MTN shares closed up at R53.64 on Monday, having closed at R52.50 on Friday. Monday`s close was off its 12-month high of R69.50.
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