MTN Nigeria gives condition to offer share bonus to investors

MTN Nigeria has given condition for the allotment of the bonus shares promised to prospective investors that participated in the telecommunications public offer last year December.

The network provider’s majority shareholder, MTN International (Mauritius) – representative of the telco’s parent company, MTN Group – had sold 575 million shares between December 1 to 14, 2021.

It was gathered that a total 126,720 retail investors subscribed to purchase the stocks, which hasn’t been allotted to the buyers more than a month after, but the shares will be issued on February 18, 2021.

However, the bonus offered by MTN Nigeria to lure investors, one stock for every 20 shares bought by the prospective investors, will now come with a condition that wasn’t initially stated prior to the sales.

READ ALSO: MTN Nigeria to lose 70% of profit to shareholders, as digital revenue slump slows growth

According to PrimaryOffer, the issuing digital exchange platform for the share sale offer, the bonus will only be offered to investors that held their acquired shares for one year (till January 31, 2023), which means holders who sell the December shares before one year, won’t be issued the bonus share(s).

MTN Nigeria also stated that individuals who purchased its shares during the December public offer will be entitled to the final proposed dividend of 2021, which is N8.57kobo per share.

The proposed dividend will be paid in April 2022, but it wasn’t clarified if the gains on the MTN Nigeria stock since the end of the December offer will reflect on the value of shares distributed to the investors who participated in April 2022.

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