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Public Investment Corp. increased its interest in MTN Group Ltd. for the second time in as many days, enjoying a price close to its lowest level in 10 years due to a crisis in Nigeria.
The participation of the PIC represents nearly 26%, said MTN, based in Johannesburg, in a statement released Thursday. The day before, the turnover of the largest wireless operator in Africa revealed that participation increased by about 24%.
"We believe that MTN has many strengths and skills," said in comments by e-mail Deon Botha, head of business affairs.
MTN's stock price has fallen 19% since Nigerian authorities said late last month that the company had illegally transferred $ 8.1 billion out of the country. The carrier must also pay $ 2 billion in back taxes in Nigeria, its largest market. However, there are signs that at least the first case could be solved, with Governor of the Central Bank Godwin Emefiele saying last week that both parties were about to "announce" an agreement.
Shares rose 1.5% to 89.73 rand at 4.30pm. Thursday in Johannesburg, valuing the company at 169 billion rand (12 billion dollars).
"There have been positive speeches about a resolution in Nigeria and this has helped," said Ruhan du Plessis, an badyst at Avior Capital Markets in Cape Town. "It seems that the CIP is comfortable buying MTN at these levels."
The PIC is the largest fund manager in Africa with more than 2 trillion rand under management. The Pretoria-based company is owned by the state and is responsible for pension funds for South African government workers.
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