Cellular network operator MTN has released the details of the financial effects of its proposed R33.5 billion acquisition of Middle Eastern operator Investcom.
The deal was announced at the beginning of the month, but JSE-listed MTN Group has been trading under a cautionary notice since then, pending the release of the financial data.
The cautionary was withdrawn this afternoon.
According to an MTN statement, the acquisition, had it been in effect throughout the nine months to 31 December last year, would have resulted in the group reporting headline earnings per share (HEPS) of 280.6c.
This is 22% lower than the actual 359.8c HEPS reported for the period.
Adjusted HEPS would have been 261.5c, which is 22.7% lower than the reported 338.2c, while attributable earnings per share (EPS) would have been 274.9c - 22.1% lower than the reported 352.7c.
The information is also based on the assumption that all Investcom shareholders accepted MTN`s offer and opted for the cash and share alternative of $2.0809 in cash and 0.1807 MTN shares for each Investcom share.
It also assumes that up to a maximum of 204.3 million new MTN shares were issued to Investcom shareholders, with the balance settled in cash.
Assuming that the proposed deal was effective as at 31 December last year, MTN`s net asset value per share would have amounted to 1 693.5c, which is 43% higher than the reported figure of 1 183.9c.
The net tangible asset value per MTN share would have been -329c, against a positive figure of 818.8c.
MTN stresses in its statement that the information is for illustrative purposes only and, because of its retrospective nature, is neither an accurate reflection of the group`s financial position after the proposed acquisition, nor a forecast of future earnings.
The MTN share was trading at 5 740c on the JSE at lunchtime, down 160c or 2.7% from Friday`s close.
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