Rwanda: MTN Lists in Rwanda, While Dividends Remain Stuck in Nigeria

analysis

MTN lists its third subsidiary in Africa as it ramps up its strategy to focus exclusively on Africa. But political and currency risks still loom large.

MTN has completed its third listing in as many years of an African subsidiary, with the listing of MTN Rwandacell on the Rwanda Stock Exchange (RSE) on Tuesday.

It listed a total of 1,350,886,600 ordinary shares at an initial listing price of Rwf269 (R3.89) per share, valuing the company at R5.2-billion.

This follows the listing of minority stakes in its Ghanaian subsidiary in 2018 and in its Nigerian subsidiary in 2019.

In Nigeria's case, the listing followed after MTN settled a long-running dispute with the Nigerian authorities over the disconnection of unregistered SIM cards. As part of the settlement, which included a $1.6-billion fine, the telecoms company agreed to list an initial 21.1% minority stake on the Nigerian Stock Exchange.

The Rwandan listing followed a similar format to its predecessors, whereby unlisted minority shareholders, in this case in Crystal Telecom, the unlisted vehicle for minority shareholders in Rwanda, now hold a direct 20% stake in MTN Rwanda and can trade their shares directly on the RSE.

As the first telecommunications network provider to be...

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