The Public Investment Corporation has boosted its shareholding in mobile operator, MTN.<\/p>\n
The country’s largest asset manager, which oversees R2 trillion in assets, increased its stake in the group from around 15% to 23.6%<\/p>\n
The purchase price was not disclosed.<\/p>\n
With MTN currently facing a $10.1 billion crisis in Nigeria, the PIC investment is being seen as the group betting on the yellow network, in a vote of confidence.<\/p>\n
MTN has suffered several blows due to its operations in Nigeria over the years, which have led to multi-billion dollar claims by the country’s authorities, and an exodus of executives at the group.<\/p>\n
A shock $5.2 billion fine in Nigeria in 2015 embroiled MTN in 10 months of negotiations and prompted a management overhaul. Earlier in 2018, authorities in the West African nation announced another round of multi-billion-dollar demands.<\/p>\n
In the latest claim, Nigerian authorities have accused MTN of expatriating $8.1 billion in dividend without permission. The country added another $2 billion fine to the mix in relation to taxes.<\/p>\n
MTN’s market cap has halved since the initial Nigerian crisis, with the carrier currently valued at R166 billion.<\/p>\n
In afternoon trade on the JSE, MTN shares were a fraction of a percentage higher, trading at R88.19.<\/p>\n