SENS Note - 29 May 2018
MTN - commenced offer for shares in Ghana
 
On 29th of May 2018 MTN Group’s subsidiary, Scancom PLC (MTN Ghana) launched an Initial Public Offer (IPO) in Ghana with the intention of listing on the Ghana Stock Exchange (GSE). The offer is expected to be open for nine weeks and close on 31 July 2018.

As previously communicated to the market, a successful listing would meet the required localisation condition under which MTN Ghana secured its 4G licence in late 2015. A key objective of the listing is to target a broad base of Ghanaian investors to share in the risks and rewards of ownership of MTN Ghana.

In 2015, MTN Ghana won a bid for a 4G/LTE licence in the 800 MHz spectrum. The National Communications Authority (NCA) required MTN Ghana to offer Ghanaian investors an opportunity to own up to 35% of its shares. Listing on the GSE was also confirmed by the NCA as an option to meet the localisation requirement. The Securities and Exchange Commission (SEC) and the GSE have approved the IPO and the listing respectively.

Under the IPO, MTN Ghana is offering up to 4 637 394 533 MTN Ghana shares, consisting of a combination of newly issued shares and a sale of existing shares held by MTN Group Limited through its wholly-owned subsidiary Investcom Consortium Holding SA. The public offer represents up to 35% of the issued shares of MTN Ghana, which implies an enterprise valuation of approximately GHS 10 billion for MTN Ghana. As per Ghana market standards, the offer is a fixed price offer where a volume of shares is made available at a fixed price. The minimum amount to be raised for the offer to be deemed successful and for the listing to proceed is approximately GHS 0,35 billion, which represents approximately 10% of the total offer size. Given the objective of targeting a broad base of Ghanaian investors, allocation to non-Ghanaian investors is to be restricted to 5% of the issued shares of MTN Ghana.

As per the requirements of the Ghana SEC, the Prospectus to be issued by MTN Ghana in respect of the IPO includes forward-looking statements (Appendix A) that reflect MTN Ghana's intentions, beliefs or current expectations and projections about its future results, operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies, plans, opportunities, trends and the market in which it operates.

The Johannesburg Stock Exchange (JSE) has been notified of the transaction. The Prospectus provides that the allotment of shares will be conducted at the discretion of the MTN Ghana Board, and the MTN Ghana Board will apply its discretion to (among other things) ensure compliance with the JSE Listings Requirements, including with respect to related party transactions as contemplated in Section 10 of the JSE Listings Requirements.

This SENS announcement is not an offer of shares as contemplated in the Prospectus but a notice to the market that there is information about MTN Ghana contained in the Prospectus which MTN Group may not have publicly disclosed previously.

The Prospectus is included on the following website for information purposes only, is not intended to market the IPO in any way and the contents of the website do not form part of the Prospectus:
 
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