Reports reveal, MTN Group Ltd. intends to offer its unit in Uganda for about $1.4 billion in what will be the country’s biggest initial public offering.
Africa’s largest wireless carrier plans to sell 20% of the business raising $280 million, a person who asked not to be named said. The South African company seeks to broaden ownership across all of its subsidiaries, according to a statement released on Tuesday.
As part of its expansion plans in the East African nation, MTN plans to invest $281 million in three years. Earlier this year, MTN units were listed in Nigeria, Ghana, and Rwanda, which were pushed through by government and local regulator pressure.
An entity listed on the Nigerian Stock Exchange was created as part of a settlement of a multi-billion dollar fine for taking too long to disconnect customers without properly identifying themselves.
MTN is in the process of scaling back its business, with a focus on mobile banking and telecom in Africa.
Currently, the Johannesburg-based company is looking to sell its projects in Yemen and Afghanistan. MTN will reduce its stake in IHS Holding Ltd. by way of an upcoming initial public offering.
A Bloomberg tally shows that Umeme Ltd. raised nearly $66 million by selling shares in 2012, the last IPO in Uganda since 2016. Investors in Uganda can participate in MTN’s IPO via their phones.