MTN Group sells $393m of shares to blacks in South Africa

The MTN Group has raised $393 million from the sale of shares to black investors, as required under South African laws that aim to increase black ownership of local firms in post-apartheid years.

The law is known as black economic-empowerment, or BEE.

The company offered 80.9 million MTN Zakhele shares to black South Africans at a discounted 20 rand, although demand for the shares exceeded supply by 1.7 times, MTN said in a stock-exchange statement.

The Shanduka Group, founded by MTN Chairman Cyril Ramaphosa, was allocated $187.3 million worth of shares, equivalent to about 9.4 million shares, the statement added.

A statement from the group says “MTN is delighted to have successfully completed this most important BEE transaction, which is integral to the ethos of the MTN Group and its vision to be a leading provider of communication services in emerging markets.

“We are honoured and feel a great sense of responsibility that the new shareholders in MTN have aligned parts of their future with that of the MTN Group,” Group CEO Phuthuma Nhleko said.

Meanwhile, MTN Ghana CEO, Brett Goschen told journalists last year that at some point it will offer shares on the Ghana Stock Exchange (GSE) to allow individual Ghanaians own shares in the company.

He said the company would only go on the GSE after it has completed a legal battle over ownership in Ghana.

By Samuel Dowuona