Financial investment company the Shanduka Group has announced the acquisition of a minority stake in MTN Nigeria. The stake has been purchased through Shanduka Telecommunication (Mauritius), a wholly-owned subsidiary of the group. Shanduka acquired its stake from three private investors.
The transaction, which is worth US$335 million, is the largest investment Shanduka has made outside South Africa. It forms part of the group’s strategy to invest in key sectors in growing African markets. It is an indication of Shanduka’s confidence in Nigeria as an important investment destination.
Shanduka Group CEO Phuti Mahanyele said the company views the investment as an important opportunity for capital formation over the long term.
MTN Nigeria is currently the largest mobile operator in Nigeria with 45.64 million active subscribers at the end of September 2012, and an estimated market share of approximately 48%. The company is an indirectly held subsidiary of MTN Group, which holds an effective 78.83% stake.
The investment was facilitated and supported by Standard Chartered, which acted as joint financial advisor and mandated lead arranger.
Mahanyele said: “This is Shanduka’s most significant investment in another African country. It is a business that is well established within a market that has great potential for further growth. Shanduka will continue to pursue opportunities in other parts of Africa.”
Mahanyele confirmed the company already has investments in Nigeria, Ghana, Mozambique and Mauritius and is looking for opportunities in other parts of the continent, particularly within infrastructure.
Chris Tredger, Online Editor