MTN Ghana seeks approval to buy back over 1m shares

Telecoms giant MTN Ghana has set an extraordinary general meeting for December 3, to seek permission from its shareholders to go ahead with their intention to buy back 1,089,630 shares from applicants whose transactions were not completed during its Initial Price Offering (IPO).

According to the company, owners of the affected shares did not provide sufficient personal information to complete their Know Your Customer (KYC) requirements as required under the company’s IPO, and in accordance with a directive from the Securities and Exchange Commission.

The extraordinary meeting will also seek authorisation from shareholders for the implementation of an employee share scheme by way of an Employee Share Ownership Plan (ESOP) for lower-level staff, and an employee share scheme by way of Performance Share Plan for senior staff.

According to a statement issued by the company, the total amount of shares subject to the employee share scheme are to be allocated on an estimated share price of GH¢0.60 representing about 4.41percent of the issued share capital of Scancom Plc.

“This follows an agreement between the Government of Ghana, MTN Group and MTN Ghana agreed in Q1 2020 to increase local ownership in MTN Ghana by a further sale of up to 12.5percent shares in MTN Ghana to Ghanaians,” it added.

Corporate Services Executive of Scancom Plc., Sam Koranteng, speaking ahead of the EGM, urged shareholders to participate in the meeting and cast their vote.

He said arrangements have been made to enable all shareholders to take part in the meeting including those without smartphones.

MTN Ghana held its second post-IPO AGM virtually on August 13, 2020, during which the financial statement for 2019 was presented to shareholders and at which all special resolutions relating to the amendment of the company’s constitution were duly passed by shareholders.

A final dividend of GH¢4 pesewas for 2019 financial year was declared and paid on August 28, 2020, to shareholders.