Black-owned investment group Shanduka has bought a $335 million (about R3 billion) minority stake in MTN Nigeria, in what the group says is a bid to grow its African presence.
According to the Shanduka group, the acquisition, purchased through Shanduka Telecommunication (a wholly-owned subsidiary of the group), was attained from three private investors.
"The transaction is the largest investment Shanduka has made outside SA. It forms part of the group's strategy to invest in key sectors in growing African markets. It is an indication of Shanduka's confidence in Nigeria as an important investment destination."
MTN Nigeria - MTN Group's largest subsidiary - is currently the largest mobile operator in Nigeria, with 45.64 million active subscribers at the end of September 2012, and an estimated market share of approximately 48%.
MTN Nigeria is an indirectly held subsidiary of MTN Group, which holds an effective 78.83% stake. This means Shanduka's stake could be up to 21.2%.
Businessman and chairman of JSE-listed MTN Group, Cyril Ramaphosa, is also the founder and chairman of the Shanduka Group, headed by Phuti Mahanyele.
A former trade union activist, Ramaphosa's net worth was estimated at $275 million by Forbes magazine in 2011, making him the 36th richest person in Africa.
Shanduka has investments in varied sectors from mining, energy, real estate and financial services. It also operates the local franchise of fast food chain McDonald's.
The China Investment Corporation paid $226 million for a quarter of Shanduka last year, valuing the company at just shy of $1 billion.
Mahanyele says the acquisition represents Shanduka's most significant investment in another African country. "[MTN] is a business that is well established within a market that has great potential for further growth."
She says Shanduka will continue to pursue opportunities in other parts of Africa.
Share
