Table of Contents
Key Points
- MTN Group repurchased 50.6 million shares worth $360.2 million from its empowerment vehicle, settling legacy NVF debt and closing MTN’s BEE scheme.
- The buyback was fully funded through internal reserves, reflecting MTN’s robust liquidity while sustaining long-term strategic growth initiatives.
- With 297 million users across 16 markets, MTN is accelerating fintech, network-sharing, and satellite efforts, positioning itself as a leading pan-African digital service provider.
MTN Group, Africa’s largest telecom service provider, led by Zimbabwean executive Ralph Mupita, has completed a significant share repurchase worth R6.43 billion ($357.8 million) from its empowerment vehicle, MTN Zakhele Futhi (MTNZF).
The transaction forms a core part of the accelerated unwind of its 2016 Black Economic Empowerment (BEE) scheme, signaling MTN’s focus on balance sheet optimization and shareholder value creation.
Empowerment vehicle unwind triggers repurchase of 50.6 million shares
The buyback follows the early exercise of a Notional Vendor Funding (NVF) call option granted by MTNZF and settled on June 23, 2025.
As a result, MTN repurchased 50,590,890 shares, equivalent to 2.68 percent of its issued share capital, at a nominal R0.0001 per share. The deal fully settles the NVF obligation, ahead of the scheme’s revised 2027 maturity which was brought forward for strategic reasons.
As part of the process, MTNZF also sold 23.77 million shares via an accelerated book build and will offload another 2.48 million residual shares on the open market. Once completed, MTNZF will become a cash shell with a projected net asset value of R2.47–R2.78 billion ($137–154 million).
Buyback underscores strategic clarity under Mupita
The repurchase was funded entirely from MTN’s internal cash reserves, reflecting the group’s robust liquidity position. Despite the substantial outflow, MTN’s board confirmed the company remains financially sound, with ample capital to support future investments. The repurchased shares will be cancelled and delisted on June 27, reducing the share count and enhancing capital efficiency.
The share repurchase comes on the heels of MTN’s Q1 2025 earnings, which showed a 10.4 percent year-on-year increase in service revenue to R47.36 billion ($2.58 billion), led by robust performance in Nigeria and Ghana.
Buyback underscores strategic clarity under Mupita
Ralph Mupita’s leadership has been defined by operational discipline, growth focus, and balance sheet agility. With 297 million subscribers across 16 markets and growing momentum in fintech and data services, MTN is solidifying its status as a pan-African digital powerhouse.
The conclusion of the BEE unwind simplifies MTN’s structure and eliminates legacy liabilities tied to the empowerment scheme, paving the way for more streamlined financial reporting and enhanced corporate flexibility.
As MTN intensifies its expansion into financial services, network-sharing, and satellite connectivity, the share buyback marks a pivotal moment—closing one chapter of empowerment while opening another focused on inclusive digital growth across Africa.
