MTN Nigeria offered incentive shares to shareholders that participated in its share offer conducted in January last year after the company failed to grow its investment in the industry.
In a circular dated January 20, 2023, and addressed to investors, the mobile telecommunication giant said the incentive shares would be allotted to shareholders on certain conditions.
The document was obtained by Ripples Nigeria on Saturday.
To qualify for the incentive shares, qualified shareholders must have held on to all or some of the offer shares acquired in January last year for 12 months period.
The document read: “The Offer for sale of 575 million ordinary shares of MTN Nigeria held by MTN International (Mauritius) Limited (the offer) was successfully completed on 31 January 2022, the date on which the Securities and Exchange commission’s (SECS) clearance of the Offer allotment was obtained.
“The terms of the Offer included an incentive of one (1) ordinary share for every twenty (20) ordinary shares purchased and allotted (the Incentive shares) up to a maximum of two hundred and fifty (250) ordinary shares.
“The incentive shares will be allotted to qualified shareholders who participated in the Offer and held all or some of their offer shares continually from 31 January 2022 to 31 January 2023 (the Qualification Date).
“To quality, a shareholder must meet all 3 conditions below: Purchased and was allotted at least 20 ordinary shares in the Offer; Holds some or all of the shares allotted at the Offer as at the Qualification Date, 31 January 2023 but subject to holding at least 20 ordinary shares and Name must appear in the Register of Members at the Qualification Date,” the statement reads.
What you need to know
MTN Nigeria’s decision to offer incentive shares to its shareholders is likened to compensation for last year’s performance after the firm’s share was not listed among the top-performing assets in the stock market last year.
It also underperformed last year when compared to its market rival, Airtel Africa, with MTN’s shareholders’ investment growing by 18.13 percent as against the 87.05 percent Airtel shareholders recorded in their investment during the period.
The difference between MTN and Airtel showed that investors had more confidence in the latter about their investments.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: 4 yrs after completion, Kwara PHC facility inactive, rural dwellers in pains
In the middle of the night sometime in September 2019, Fatimah Ballah struggled with severe pains as she tries to...
INVESTIGATION: How Oyo State, contractors spent N1.1bn on water projects, but communities don’t have a drop
Multimillion naira water projects largely initiated by the late Abiola Ajimobi-led state government in Oyo State to benefit over 40...
INVESTIGATION: In Cross River, civil servants retire into poverty as govt looks away, squanders funds on frivolities
Thousands of civil servants in Cross River State struggle to stay alive as they are denied their gratuities and monthly...
Students suffer as contractors abandon Kano school projects after receiving over N70m
In 2019, to improve the condition of public schools in Kano State, the Federal Government disbursed millions of naira to...
SPECIAL REPORT: World Bank road projects go bad in Enugu, as state govt fails to fulfill promise
Counterpart funded road projects between the world Bank and Enugu State government have started to fail, as the state government...