JOHANNESBURG, April 19 (Reuters) – MTN Rwandacell Plc, majority-owned by South Africa’s MTN Group, said on Monday trading in existing shares worth about $365 million would start in Rwanda on May 4 after it obtained approvals from authorities and a minority shareholder.
The move to start trading existing shares, known as a listing by introduction, is part of MTN group’s plan to promote local ownership and participation in MTN businesses across its markets and also provide liquidity for existing shareholders.
MTN Rwanda said the listing was approved by Rwanda’s Capital Market Authority and the Rwanda Stock Exchange.
Crystal Telecom’s (CTL) shareholders have also approved distributing the 20% of MTN Rwanda shares held by CTL to CTL shareholders effective from the listing date, it added.
CTL shareholders will therefore become direct shareholders in MTN Rwanda and be able to trade their MTN Rwanda shares on the stock exchange.
MTN said it would list 1.350 billion ordinary shares with a nominal value of 1 Rwandan francs each at an initial listing price of 269 Rwandan francs, valuing the carrier at 363 billion Rwandan francs ($365 million).
“We look forward to participating in the capital markets of Rwanda and see this as an exciting opportunity for the investor community at large to participate directly in the ownership of MTN Rwanda,” MTN Rwanda CEO Mitwa Ng’ambi said in a statement.
($1 = 995.8300 Rwandan francs) (Reporting by Nqobile Dludla. Editing by Mark Potter)
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