MTN Group Ltd. will push on with a plan to reduce its majority stake in the wireless carrier’s Nigerian business, though turmoil caused by the coronavirus may require the sale to be done in smaller chunks than anticipated.
The impact of the pandemic on international financial markets doesn’t change the importance of selling part of the 79% shareholding to local investors, Chief Financial Officer Ralph Mupita said in an interview. However, the rest of a three-to-five year plan to dispose of 25-billion rand ($1.4 billion) of assets will probably take a back seat for now, he said.
“In Nigeria we still want to do part of our retail offer, even if it’s a smaller part of the total planned sale,” Mupita said by phone. “We are applying our minds to doing this at the moment.”
MTN is disposing of part of its largest division after a series of disputes with Nigerian authorities, most recently over tax payments and the withdrawal of cash from the country. The plan is to sell about a 15% stake to local investors, reducing MTN’s ownership to about 64%. MTN Nigeria Communications Ltd. was listed in Lagos last year, and is the country’s second-biggest publicly traded company.
Nigeria is MTN’s biggest market, accounting for a third of overall 2019 revenue and almost 40% of earnings before interest, taxes, depreciation and amortization. The Johannesburg-based company is also the biggest provider of telecom services in the country, with almost 69 million customers, according to the Nigerian Communications Commission.
Share Rally
The drastic fall in oil prices, hurting major producers including Nigeria, and the outbreak of the coronavirus has weighed on MTN’s share price, which hit 15-year lows last week. The stock has since rallied for six straight days, and traded as much as 21% higher in Johannesburg on Tuesday -- the biggest jump in two decades.
“We of course have no visibility on how all of this could play out, but the business currently has a resilient balance sheet and is highly cash generative, with most of our business coming from pre-paid contracts,” Mupita said.
MTN’s cash position was bolstered by the sale of 14 billion rand in assets last year, including stakes in telecom-tower companies in certain African markets. Some of that was paid in dollars, which provides a currency hedge against the weakening rand, the CFO said. MTN also has a credit facility that can be accessed if needed, he added.
MTN expects an increase in data usage as more and more of its markets go into lockdown due to the outbreak of the coronavirus.
“We want to make sure that our networks have resilience and capacity,” Mupita said. “We are looking at where we can drive broader coverage.”
By Loni Prinsloo
Bloomberg
Wednesday, April 1, 2020
Nigeria confirms four new cases of coronavirus, totalling 135
The Nigeria Centre for Disease Control has announced additional four new cases of Covid-19 in the country.
The agency on Tuesday said the new cases were reported in Ogun and Osun States.
This brings the total number of confirmed cases in the country to 135.
NCDC said “as at 11:15 am 31st March there are 135 confirmed cases of COVID-19 reported in Nigeria with 2 deaths. ”
Breakdown
A breakdown of the cases in Nigeria shows that Lagos is still the epicenter of the disease. Meanwhile, all the states in the South-west region of Nigeria have recorded at least a case of the disease.
NCDC said all the new cases have mild to moderate symptoms and are currently receiving care.
Till date, eight cases have been discharged and two deaths have been recorded.
As of 11:15 a.m. March 31, there cases are Lagos-81, FCT- 25, Oyo – 8, Osun – 5, Ogun- 4, Kaduna- 3
Enugu- 2, Edo – 2, Bauchi – 2, while Ekiti, Rivers and Benue have one case respectively.
The number of infections is expected to keep increasing as the government intensifies contact tracing and monitoring in respect of the disease.
In a bid to contain the spread of the virus, the government has ordered a lockdown of three states – Lagos, Ogun and Abuja.
By Ayodamola Owoseye
By Ayodamola Owoseye
Tuesday, March 31, 2020
25 year old Nigerian student dies of coronavirus weeks before graduation
Weeks before he was set to graduate at the Western Michigan University, a Nigerian-America student, Bassey Offiong, died from coronavirus after being refused a test several times in Michigan.
The PUNCH gathered that the deceased is a 25-year-old college student studying Chemical Engineering at the Michigan-based university.
A relative to the deceased told The PUNCH that he tested positive for coronavirus on Friday.
Offiong’s cousin, Rosalyn Afiong, added that the student died on Sunday, describing the deceased as a “shining light.”
“My dear sweet cousin, this is unreal. I don’t even know where to begin. May your soul rest in eternal peace. You did everything and more with your time here on Earth, and although you weren’t anywhere near done in your purpose, you’ve been called for a higher purpose bigger than us all.
“I love you so much and I pray you to keep that same light shining on us from above,” Afiong said while paying a tribute on Facebook.
According to his sister, Offiong was refused testing several times despite showing symptoms of the deadly virus.
She said the victim had shortness of breath, fatigue and fever before his death.
“I told him to ask them to test him. He said they refused to test him,” she told Detroit News.
Confirming his death, WMU president, Edward Montgomery, said, “On behalf of the entire Bronco community, I want to extend my deepest condolences to his entire family, including his sister Asari, who has been generous in communicating with us regularly.”
One of his friends, Koko Adiaha, said it was “extremely hard” to believe Offiong’s death,
Adiaha said, “My mother called me frantic and told me we lost Bassey Offiong due to COVID-19. I just can’t wrap my head around the why and how.
“This one is extremely hard to process. Beloved by everyone who knew him. Bassey deserved much more than what was offered to him.”
A representative of Michigan’s Sixth Congressional District, Fred Upton, added, “I woke up this Sunday morning to the sad news of a WMU Engineering student who passed away with coronavirus.
“He had a ventilator and, likely, other members of his immediate family are also impacted along with perhaps his roommates at WMU. Our condolences are with them.”
Punch
The PUNCH gathered that the deceased is a 25-year-old college student studying Chemical Engineering at the Michigan-based university.
A relative to the deceased told The PUNCH that he tested positive for coronavirus on Friday.
Offiong’s cousin, Rosalyn Afiong, added that the student died on Sunday, describing the deceased as a “shining light.”
“My dear sweet cousin, this is unreal. I don’t even know where to begin. May your soul rest in eternal peace. You did everything and more with your time here on Earth, and although you weren’t anywhere near done in your purpose, you’ve been called for a higher purpose bigger than us all.
“I love you so much and I pray you to keep that same light shining on us from above,” Afiong said while paying a tribute on Facebook.
According to his sister, Offiong was refused testing several times despite showing symptoms of the deadly virus.
She said the victim had shortness of breath, fatigue and fever before his death.
“I told him to ask them to test him. He said they refused to test him,” she told Detroit News.
Confirming his death, WMU president, Edward Montgomery, said, “On behalf of the entire Bronco community, I want to extend my deepest condolences to his entire family, including his sister Asari, who has been generous in communicating with us regularly.”
One of his friends, Koko Adiaha, said it was “extremely hard” to believe Offiong’s death,
Adiaha said, “My mother called me frantic and told me we lost Bassey Offiong due to COVID-19. I just can’t wrap my head around the why and how.
“This one is extremely hard to process. Beloved by everyone who knew him. Bassey deserved much more than what was offered to him.”
A representative of Michigan’s Sixth Congressional District, Fred Upton, added, “I woke up this Sunday morning to the sad news of a WMU Engineering student who passed away with coronavirus.
“He had a ventilator and, likely, other members of his immediate family are also impacted along with perhaps his roommates at WMU. Our condolences are with them.”
Punch
Monday, March 30, 2020
President Buhari full Address on COVID-19
From the first signs that Coronavirus, or COVID-19 was turning into an epidemic and was officially declared a world-wide emergency, the Federal Government started planning preventive, containment and curative measures in the event the disease hits Nigeria. President Buhari addresses Nigerians, says his administration is doing everything to contain the outbreak of Coronavirus in the country. The president made the assurance in a broadcast on Sunday.
Lagos on Lockdown to Curb Virus in Nigeria
Nigeria will restrict all movement of people and ordered businesses and offices closed in its two main cities, Lagos and Abuja, as well as Ogun state -- the three areas in Africa’s most populous nation that have been hit hardest by the coronavirus.
The lockdown will take effect Monday at 11 p.m. and last for an initial period of two weeks, President Muhammadu Buhari said in a speech on state TV Sunday. The first country in sub-Saharan Africa to identify a person who tested positive for the disease, Nigeria now has 97 cases. It’s already closed its borders and halted domestic flights.
Lagos, Africa’s biggest city, is a sprawling metropolis of about 20 million people, and Abuja, the capital, has several million. Ogun state neighbors Lagos and is an industrial hub.
“We are fully aware that such measures will cause much hardship and inconvenience to many citizens,” Buhari said. “But this is a matter of life and death.”
While travel to or from other states must be restricted, the seaports will remain open for cargo. Private jets will also be grounded and all federal government stadia will be converted into isolation centers and makeshift hospitals, he said.
Among other measures announced by Buhari are the suspension of repayments for credit given to low-income traders and farmers, as well as for manufacturers and agribusinesses that have received funding as part of Buhari’s policy to reduce Nigeria’s dependence on oil.
By Ruth Olurounbi and Elisha Bala-Gbogbo
Bloomberg
The lockdown will take effect Monday at 11 p.m. and last for an initial period of two weeks, President Muhammadu Buhari said in a speech on state TV Sunday. The first country in sub-Saharan Africa to identify a person who tested positive for the disease, Nigeria now has 97 cases. It’s already closed its borders and halted domestic flights.
Lagos, Africa’s biggest city, is a sprawling metropolis of about 20 million people, and Abuja, the capital, has several million. Ogun state neighbors Lagos and is an industrial hub.
“We are fully aware that such measures will cause much hardship and inconvenience to many citizens,” Buhari said. “But this is a matter of life and death.”
While travel to or from other states must be restricted, the seaports will remain open for cargo. Private jets will also be grounded and all federal government stadia will be converted into isolation centers and makeshift hospitals, he said.
Among other measures announced by Buhari are the suspension of repayments for credit given to low-income traders and farmers, as well as for manufacturers and agribusinesses that have received funding as part of Buhari’s policy to reduce Nigeria’s dependence on oil.
By Ruth Olurounbi and Elisha Bala-Gbogbo
Bloomberg
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