MTN Group assets sale hit N357bn in 2019
Aside from its annual net profit, telecommunications giant, MTN Group appears to have had a flourishing and robust 2019, following the R14billion proceedings, realised from sales of some of its assets. R14billion is approximately N357.441billion.
MTN said it announced its Asset Realisation Programme in March 2019, which aimed to simplify its portfolio, reduce debt and risk, improve returns and realise proceeds of at least R15bn over three years.
“Following on the proceeds raised from the disposals of its stakes in Amadeus, Travelstart and the ATC loan of R2.1bn earlier in the year, MTN has now concluded two further transactions, bringing the total proceeds from its ARP to R14bn thus far,” the telecommunications company has said.
“Firstly, MTN has concluded an agreement to dispose of its 49 per cent equity holdings in the Ghana and Uganda Tower Company investments to a subsidiary of American Tower Company for $523m, approximately R7.3bn. This transaction is expected to close in Q1 2020”, it stated.
I will use technology to enhance public service delivery-Buhari
MTN confirmed that MTN Nigeria had completed the redemption of its preference shares with MTN Group, receiving $315million (about R4.4bn) in December 2019.
Rob Shuter, the Group President and Chief Executive Officer was also quoted as saying: “Following the completion of these transactions, MTN will have realised proceeds of approximately R14bn within the first 12 months of this programme.
“Realising proceeds from simplifying the group remains a major strategic objective and we expect further progress in this programme in 2020.”
BUA Cement becomes NSE 3rd biggest with listing of 33.9bn shares
Temitope Adebayo
The Nigerian Stock Exchange (NSE) listed the 33.864 billion ordinary shares of 50 kobo each BUA Cement Plc at N35 per share, thus becoming the third-largest company on the NSE.
The debut listing of the cement company shares on Thursday has added N1.18 trillion to the capitalisation of the exchange.
At a closing ceremony to commemorate the listing, Mr Oscar Onyema, Chief Executive Officer, NSE said the listing was significant as it marked the first in the year while noting that it is another opportunity for investors to have access to a company with a good track record.
Onyema revealed that the company, presently listed on the main board of the Exchange, has plans to move to the Premium Board of the NSE in a very short period of time.
Commenting, the Managing Director/CEO of BUA Cement Plc, Yusuf Binji said it was a major fulfilment for the group to have its shares listed after a merger of two companies that control significant markets in Southern and Northern parts of the country.
According to Binji, the listing of BUA followed the merger of Cement Company of Northern Nigeria (CCNN)Plc and Obu Cement Company Limited. He explained that while CCNN was the listed company before now, its merger with Obu Cement, both of members of the BUA Group, gave birth to BUA Cement Plc, an enlarged firm, with a total installed capacity of 8.0 metric tonnes per annum(mtpa).
He said with the listing the shareholders should expect better returns because the company will be one the top best dividend-paying company, adding that its installed capacity would be increased to 11 mtpa.
Binji said in addition to meeting the demand from customers in our core regions in the country, the enlarged company would be positioned to distribute its products in new geographical markets, creating the potential for additional shareholder value creation.
“The merger of the two companies to become BUA Cement would provide opportunities for significant cost savings and improved operational efficiencies by streamlining operations and optimising the use of combined resources”, he said.
