Ramaphosa’s Shanduka takes stake in MTN Nigeria

It’s raining deals in Cyril Ramaphosa’s world. The black economic empowerment (BEE) styled investment holding group controlled by Ramaphosa announced yesterday that it has acquired a $335m minority stake in MTN Nigeria.

The name of Ramaphosa, an ANC veteran who also serves as chairman of the MTN Group, has featured prominently over the past few days in the race for leadership in the ANC. His name has been featured in nomination least that line up Jacob Zuma for second presidential term and Ramaphosa for deputy presidency in the run up to the ANC elective pre4sidency in Mangaung in December. This may be lining up Ramaphosa who has become a prominent businessman for a return into full time politics and for presidency after the Zuma tenure.

Ramaphosa’s investment holding group Shanduka has been extremely busy in the past few months raking in deals. These will include being appointed developer of McDonald in South Africa and linking up with the Chinese Investment Corporation which took a 20% stake in Shanduka.

In a statement released yesterday Shanduka said the MTN Nigeria stake has been purchased through Shanduka Telecommunication (Mauritius), a wholly-owned subsidiary of the group. Shanduka acquired its stake from three private investors.

The transaction is the largest investment Shanduka has made outside South Africa. 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.

Shanduka Group CEO Phuti Mahanyele said: “This is Shanduka’s most significant investment in another African country. It is a business that is well established within a market that has great potential for further growth. Shanduka will continue to pursue opportunities in other parts of Africa.”

MTN Nigeria 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%. The company is an indirectly held subsidiary of MTN Group, which holds an effective 78.83% stake.

The investment was facilitated and supported by Standard Chartered, which acted as joint financial advisor and mandated lead arranger.

 

 

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