[ad_1]
Public Investment Corp. has increased its stake in MTN Group for the second time in as many days, benefiting from a price close to its lowest level in 10 years in the context of a crisis in Nigeria.
PIC's participation is close to 26 percent, said Johannesburg-based MTN in a statement released on Thursday. The previous day, revenue from the largest wireless operator in Africa indicated that participation had increased to 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 share price has fallen 19% since Nigerian authorities said late August 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 4.30 pm Thursday in Johannesburg, valuing the company at 169 billion rand.
"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 250 billion rand under management. The Pretoria-based company is owned by the state and is responsible for pension funds for South African government workers.
© 2018 Bloomberg L.P
Source link
