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MTN to sell $1.1bn stake to black investors
16 July 2010
MTN’s CEO Phuthuma Nhleko says the company will sell stakes in the business to a black investment operation and to staff who suffered apartheid discrimination
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MTN
Phuthuma Nhleko
South Africa
black investment
South African operator MTN will sell nearly 4% of its business — worth nearly $1.1 billion — to black investors.
MTN, which is Africa’s largest operator, will also offer shares to employees outside management who were discriminated against under South Africa’s former apartheid system.
CEO Phuthuma Nhleko said in a statement that black empowerment “is important to its future success as a group”.
The deal will cost MTN nearly $301.43 million, including $129.96 million in vendor financing to the company and the $20.01 million cost of the employee share ownership programme. The individuals will indirectly own a further 29% of the company’s South African operations after the deal.
MTN, which is planning to sell shares at the end of August 2010, will also offer shares of its empowerment vehicle, Black Investment, at $2.64 each. The company will offer the equivalent of 0.1% of its issued share capital to South African employees, excluding managers and directors. GTB