One of Africa’s largest investment funds has increased its stake in MTN Group, following the continued decline in the telcos share price. The Public Investment Corporation (PIC) increased its stake in MTN Group from 24 per cent to over 26 per cent, according to a company statement.
MTN Group’s share price has fallen by 19 per cent, since an accounting crisis in Nigeria saw the Nigerian government accuse Africa’s biggest telco of illegally transferring $8.1 billion of revenues out of the country. The Nigerian government also claims that MTN Group owes over $2 billion in taxes.
The group’s share price stood at 87.20 rand on the Johannesburg Stock Exchange, at 11:45am on Tuesday – a concern for the group’s board, but a potential bargain for would be investors.
“We believe MTN has a strong set of assets and competencies,” Deon Botha, head of corporate affairs, told the Bloomberg news site.
MTN Group is Africa’s biggest telco with a presence in 24 markets across the continent. The group boasts over 232 million mobile subscribers across Africa, making it the eleventh largest mobile network operator in the world. Its biggest markets are in South Africa and Nigeria, where it enjoys a 35 per cent share of the mobile market. – Total Telecom