MTN Group agreed to list 20% of its Uganda unit on the country’s stock exchange, the latest move by Africa’s largest wireless carrier to allow more local investors to buy and sell shares in individual units.
The move by the South African company is aimed at ensuring broad-based ownership in its operating subsidiaries, according to a statement on Tuesday.
The decision follows listings of MTN’s units in Nigeria, Ghana and Rwanda, which to some extent took place after pressure from government and local regulators. The creation of a Lagos-listed entity was part of a deal to settle a multi-billion dollar fine for being slow to disconnect customers without proper documentation.
MTN is in the middle of a scaling back of the company, with the focus turning primarily to African telecom and mobile-banking services. The Johannesburg-based carrier abandoned its business in Syria and is looking to sell the Afghanistan and Yemen units. An upcoming initial public offering of IHS Holding Ltd. will allow MTN to reduce its stake in the pan-African towers company.