MTN Uganda is reportedly in talks with Government that could see them sell stake to NSSF. Consequently, this will bring a rise in local proprietorship in Uganda’s biggest taxpayer from the current 5%.
The telecommunications regulator late last year while recommending MTN’s license renewal recommended that MTN have its stock listed on the local exchange. The telecom’s license expired in October last year and has been operating on provisional licenses.
During a public hearing, MTN Uganda CEO expounded on other possible ways of getting a piece of MTN for those interested in local shareholding as the Uganda Securities Exchange (USE) listing might not be possible.
However, after the recent license limbo, the USE listing seemed like a precondition to renew the behemoth Republic of South Africa based telecom company’s license to operate in Uganda.
MTN reportedly in talks with Government over possible sell of stake to NSSF
The President of the Republic of Uganda, Mr. Museveni met with MTN Group’s chief executive, Robert Shuter, in Davos, Switzerland. Mr. Museveni believes that Ugandans should own a loftier portion of the telecom company.
It is important that you float shares on the local stock exchange to allow for local ownership now that the license has been renewed. Mr Museveni said
MTN has remained tight-lipped about the issue. However, the information provided by the President indicates ongoing conversation between Uganda’s leading telecom company and the Government.
Also, a statement from the President’s office quoted MTN Group’s CEO Rob Shuter as saying the firm was in negotiations with a state-controlled National Social Security Fund (NSSF) for a possible sale of shares.