Airtel Africa shares hit All Time High; MTN shareholders left empty-handed

Investors at Airtel Africa made over N358.90 billion on Wednesday after the firm’s share value hit an All-Time High, while MTN Nigeria shareholders were left without a gain this year.

Airtel Africa’s gain was triggered by a 9.09% appreciation in the equity value of the Bharti Airtel subsidiary at the end of trading. The stock previously cost N955 per share on Tuesday, but settled at N1050.5 on Wednesday.

This pulled up Airtel Africa’s market capitalisation to N3.94 trillion, moving shareholders total investment up from Tuesday’s N3.58 trillion – adding N358.90 billion to investors’ coffers, Ripples Nigeria analysis showed.

It was gathered that the surge in Airtel Africa’s market capitalisation occurred after the telco successfully sold its tower assets in Tanzania, making a fortune of $159 million for the corporation – which increased liquidity to run other operations.

Read also: Airtel Africa pockets N61bn from share buyback, amid sell off by MTN

SBA Communications Corporation and Paradigm Infrastructure Limited purchased the assets, and they are expected to make a second batch of payment, to bring the total acquisition fee to $176.1 million.

Meanwhile, during the same day, MTN Nigeria shareholders left the capital market empty handed, as the y’ello stock traded flat for the second day in a row since resuming from the new year break.

This means investors of the MTN Nigeria equity haven’t made a gain this year, and their investment remains in the position it was by December 31, 2021, as stock prices stagnated at N197 per share, while total shareholders’ investment was stuck at N4 trillion.

Airtel Africa’s gain shrank the space between it and MTN on the most capitalised companies in the Nigerian Exchange Group, with N61.90 billion [representing 1.5% difference] separating both network provider.

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