By Samuel Bankole
MTN Nigeria on Wednesday said that it has allocated a total of 3,977,418 shares to 120,359 investors as incentive shares for participating in its Offer for Sale in December 2021.
The incentive share allotted to the investors is valued at N992.36 million at N249.50 per share at the closing prices of the telecom company shares on the Nigerian Exchange limited (NGX) on Wednesday, according to the Global Financial Digest tally.
In a regulatory filing with the NGX, the local unit of South Africa’s telecom firm said with the incentive shares, the total shares allotted through the Offer for sales is approximately 665.23 million.
The telecom firm stated that the “The Incentive Shares have been credited to their Central Securities Clearing System (CSCS) accounts from the shares held by MTN International (Mauritius) Limited, in line with our ambition of creating shared value for our shareholders.”
The shares of MTN Nigeria gained 0.60 percent at the end of Wednesday’s transaction, bringing the year-to-date gains to 16 percent.
The regulatory filing stated that “MTN Nigeria Communications Plc (MTN Nigeria) is pleased to inform the market of the successful allotment of the Incentive Shares to qualified Shareholders, as promised to participating investors in the December 2021 Offer for Sale (the Offer), which was completed on 31 January 2022 – the date on which the Securities & Exchange Commission (SEC) cleared the Offer allotment.
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“The Offer included an incentive of one (1) ordinary Share for every twenty (20) ordinary shares purchased and allotted (the Incentive Shares) up to a maximum of two hundred and fifty (250) ordinary shares to encourage retail participation.
“As disclosed in the Offer Prospectus, the Incentive became effective on January 31, 2023 (the Qualification Date), being 12 months following the SEC’s clearance of the Offer Allotment, The shareholders who qualified for the Incentive Shares are those who:
“Purchased and were allotted at least 20 ordinary shares in the Offer:
“Held some or all the shares allotted at the Offer as at the Qualification Date, 31 January 2023 but subject to holding at least 20 ordinary shares; and Whose names appeared in the Register of Members at the Qualification Date.
Consequently, 120,359 investors, representing 94.77% of those who participated in the Offer, qualified to receive the Incentive Shares totaling 3,977,418 ordinary shares of MTN Nigeria.
This brings the total shares allotted through the Offer to approximately 665.23 million.
The Incentive Shares have been credited to their Central Securities Clearing System (CSCS) accounts from the shares held by MTN International (Mauritius) Limited, in line with our ambition of creating shared value for our shareholders.