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Shanduka Increases Stake In MTN Nigeria by mbulela: 9:07am On Nov 29, 2012 |
Shanduka, MTN deal highlights SA scramble for solace in Nigeria market THURSDAY, 29 NOVEMBER 2012 00:00 PATRICK ATUANYA & BEN UZOR JNR South Africa strategic investment drive into Nigeria is continuing apace with the purchase of a further $335 million stake in MTN Nigeria by Shanduka Group, the investment holdings group controlled by Cyril Ramaphosa, businessman and chairman of JSE-listed mobile phone group MTN. Analysts say it is an indication of the scramble among South Africa investors to seek solace, amid the European crisis, while at the same time increasing their intra Africa investment drive. “The intra Africa investment drive is a strategic effort underlined by their competitive advantage,” Bismarck Rewane, CEO Financial Derivatives, told BusinessDay yesterday. In the past few years, South African firms have been moving fast to tap into Nigeria’s huge consumer market. Last week Rand Merchant Bank, South Africa’s second-largest financial company, got a license to operate as a merchant bank in Nigeria. The minimum capital base for merchant banks is N15 billion ($952m). In September, Tiger Brands, another South African company in the foods business, bought 63 percent of Dangote Flour. The company has lately said it would raise its shareholding to 70 percent. Rand Merchant Bank, in its 2012 report: Where to Invest in Africa, observed that Nigeria “has the most favourable macroeconomic backdrop for sumption spending growth.” Nigeria’s population and pent up demand for goods and services makes investment case. From mobile phones (Nigeria’s is the largest), unbanked population (36 percent of SSA’s unbanked population are Nigerians) The latest move by Shanduka Group Ltd whittled down Nigerian ownership of MTN Nigeria to about 18 percent. MTN Nigeria, with over 45.6 million subscribers and an estimated market share of 48 percent, is the largest subsidiary of the MTN Group, Africa’s largest mobile network operator, and contributes about 30 percent of MTN group’s earnings. Shanduka Group stake makes it the third largest shareholder in MTN Nigeria. “Nigeria is the most populous country on the continent and is an important market from a consumer perspective,” said Shanduka Chief Executive Phuti Mahanyele. The investment firm declined to say exactly how much it owns of the Nigerian unit, purchased from three private investors including private equity company African Capital Alliance. BusinessDay analysis of the investment, however, shows Shanduka Group stake amounts to about 3.1 percent of MTN Nigeria, with the MTN Group valued at $36 billion and the Nigerian business alone valued at $10.8 billion. The investment leaves the South African telecommunication company (MTN Group) with 78.8 percent ownership of MTN Nigeria, the second-largest shareholders are a group of Nigerian shareholders at 18 percent, while Shanduka Group has a 3.1 percent stake. MTN Group in a 2007 private placement, sold a total of 43,024,602 “MTN Nigeria linked units” or shares at $24.56 per unit, intended to raise the Nigerian ownership of MTN Nigeria to 21.4 percent. It was learnt that Standard Chartered alerted Shanduka Group to the opportunity and also helped finance the purchase through debt and equity. But the deal according to the newspaper report, raises questions about corporate governance and a potential conflict of interest. The concerns stem from Ramaphosa being the chairman of the MTN Group, of which MTN International is a subsidiary. The $335m deal was Shanduka’s largest-ever investment outside of South Africa, its CEO Phuti Mahanyele said on Tuesday. She insisted that the deal was above board and that Ramaphosa was not directly involved in negotiating the deal. “It was not an exclusive deal, but was put out into the open market,” Ms Mahanyele said. “The shareholding in MTN Nigeria is held by MTN International and (Ramaphosa) sits on the board of the (holding) group and was not involved (in the negotiations). “ A telecoms industry executive, who asked not be named, said it was difficult to imagine that Ramaphosa would not have been aware there were investors in MTN Nigeria who wanted to sell their stake. A corporate governance expert, who also asked not to be named, agreed that the deal raised questions. “Shanduka should not be anywhere near MTN, end of story,” the second source said. “Ramaphosa should be aware of the conflict of interest.” MTN Group on Tuesday refused to comment on the deal. The stake was purchased from three private investors. http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/48248-shanduka-mtn-deal-highlights-sa-scramble-for-solace-in-nigeria-market |
Re: Shanduka Increases Stake In MTN Nigeria by DebbieChelsea(f): 1:54pm On Nov 29, 2012 |
MTN again? |
Re: Shanduka Increases Stake In MTN Nigeria by aruzuoke(m): 1:56pm On Nov 29, 2012 |
I am the ........ to co.. |
Re: Shanduka Increases Stake In MTN Nigeria by PrinceNN(m): 1:56pm On Nov 29, 2012 |
Debbie Chelsea: MTN again? nyc pic |
Re: Shanduka Increases Stake In MTN Nigeria by Jorian(m): 1:57pm On Nov 29, 2012 |
nonsence. i don't want to hear anything about mtn agbm |
Re: Shanduka Increases Stake In MTN Nigeria by ejifranks(m): 1:58pm On Nov 29, 2012 |
South Africa investors slowly creeping into Nigeria to have a reasonable stake in our economy...Nothing new though, a lot of Nigerian investors are out there doing same in other African countries....How this will affect me though is still what am pondering.... |
Re: Shanduka Increases Stake In MTN Nigeria by DebbieChelsea(f): 2:03pm On Nov 29, 2012 |
₱®ÌИСΞ:. Thanx |
Re: Shanduka Increases Stake In MTN Nigeria by martyns303(m): 2:07pm On Nov 29, 2012 |
Soon our economy will be determined by SA. It's like selling your country when all the major company and industries are owned and controlled by foreign nations. |
Re: Shanduka Increases Stake In MTN Nigeria by kunlekunle: 2:07pm On Nov 29, 2012 |
our businessmen are mostly politically made, very few can venture into international biz. its a pity, in the next 10 years the south africans are likely to dominate most industries. |
Re: Shanduka Increases Stake In MTN Nigeria by PrinceNN(m): 2:09pm On Nov 29, 2012 |
Debbie Chelsea: . Thanxyw |
Re: Shanduka Increases Stake In MTN Nigeria by initiator(m): 2:29pm On Nov 29, 2012 |
Why would the chairman of the company buying stakes in his own company? Smells like insider trading. |
Re: Shanduka Increases Stake In MTN Nigeria by younglad007(m): 2:32pm On Nov 29, 2012 |
notin 2 say |
Re: Shanduka Increases Stake In MTN Nigeria by AjanleKoko: 2:35pm On Nov 29, 2012 |
martyns303: Soon our economy will be determined by SA. It's like selling your country when all the major company and industries are owned and controlled by foreign nations. Comparatively, Nigeria is doing better than most African nations. 1 Like |
Re: Shanduka Increases Stake In MTN Nigeria by free2ryhme: 4:28pm On Nov 29, 2012 |
Debbie Chelsea: . Thanx did u use bleach? 1 Like |
Re: Shanduka Increases Stake In MTN Nigeria by ichommy(m): 4:44pm On Nov 29, 2012 |
Free2ryme, your mouth no go kill u. free2ryhme: |
Re: Shanduka Increases Stake In MTN Nigeria by Nobody: 5:20pm On Nov 29, 2012 |
Mtn.......=Manage The Network |
Re: Shanduka Increases Stake In MTN Nigeria by martyns303(m): 5:34pm On Nov 29, 2012 |
AjanleKoko:stop living in denial. how many African countries have you visited? have you seen how Nigerian citizens are treated by these countries you presume you'r better than? |
Re: Shanduka Increases Stake In MTN Nigeria by esere826: 6:16pm On Nov 29, 2012 |
wow, this move has virtually given Cyril Ramaphosa total control of MTN kudos to him Like the South Africans, Its about time our own businessmen push into other geographical markets If our pastors have been able to do it, then our businessmen should not feel intimidated |
Re: Shanduka Increases Stake In MTN Nigeria by unclenna(m): 6:41pm On Nov 29, 2012 |
mbulela: Shanduka, MTN deal highlights SA scramble for solace in Nigeria marketWhy should Standard Chartered play us like this. They should have informed Dangote to buy up the shares...... |
Re: Shanduka Increases Stake In MTN Nigeria by Nobody: 6:41pm On Nov 29, 2012 |
AjanleKoko: ...and will continue to do in the near to medium term. |
Re: Shanduka Increases Stake In MTN Nigeria by unclenna(m): 6:41pm On Nov 29, 2012 |
mbulela: Shanduka, MTN deal highlights SA scramble for solace in Nigeria marketWhy should Standard Chartered play us like this. They should have informed Dangote to buy up the shares...... |
Re: Shanduka Increases Stake In MTN Nigeria by Nobody: 6:43pm On Nov 29, 2012 |
unclenna: Dangote's final ambition is to become the world's largest cement baron which is why he's selling most of his other investments. |
Re: Shanduka Increases Stake In MTN Nigeria by miqos02(m): 7:19pm On Nov 29, 2012 |
When will mtn list on the nigerian exchange? Dem dey craze |
Re: Shanduka Increases Stake In MTN Nigeria by esere826: 7:57pm On Nov 29, 2012 |
miqos02: When will mtn list on the nigerian exchange? Dem dey craze I guess they will be willing to list on NSE when their profits start dwindling We then rush in to buy expired goods and the rich take our money and get richer |
Re: Shanduka Increases Stake In MTN Nigeria by aglomar: 10:47pm On Nov 29, 2012 |
Foreign entities are neo-colonising us. |
Re: Shanduka Increases Stake In MTN Nigeria by Omosivie1(f): 12:57am On Nov 30, 2012 |
unclenna:Dude, did u really have 2 quote it twice? Smh |
Re: Shanduka Increases Stake In MTN Nigeria by free2ryhme: 7:25am On Nov 30, 2012 |
ichommy: Free2ryme, your mouth no go kill u. i see say u dey look for attention... try yaba left ya people their go give you lots of love |
Re: Shanduka Increases Stake In MTN Nigeria by free2ryhme: 7:25am On Nov 30, 2012 |
aglomar: Foreign entities are neo-colonising us. your govt allows it |
Re: Shanduka Increases Stake In MTN Nigeria by JimmyBoy1: 7:27am On Nov 30, 2012 |
Make them bring the investment come, we are not complaining. |
Re: Shanduka Increases Stake In MTN Nigeria by Akainzo(m): 8:50am On Nov 30, 2012 |
miqos02: When will mtn list on the nigerian exchange? Dem dey craze They did a private placement some years back (2007) and the thinking was that they would go public. Unfortunately, this has not happened and with this purchase now, looks less likely to happen. |
Re: Shanduka Increases Stake In MTN Nigeria by AjanleKoko: 9:06am On Nov 30, 2012 |
Akainzo: They were planning to list a small portion of their shares on the exchange after the private placement. But then the stock market tanked, and with all the attendant scandals, they backed off. Their market CAP will distort share prices severely if they try it now. |
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