In a note to shareholders, MTN says the Nigerian Communications Commission (NCC) has approved the transaction and assigned the frequency to MTN Nigeria.
With the acquisition, MTN says it will significantly improve customer experience in its most profitable and biggest market.
“Through this acquisition, we will be better positioned to support the deepening of broadband penetration in the country,” Karl Toriola, CEO of MTN Nigeria, commented on the acquisition.
“The added resources will also greatly impact our customers’ experience, providing even better Internet connectivity. It is our goal to keep finding ways to grant everyone access to a modern, connected life.”
This development comes on the back of the growing number of active data subscribers on MTN’s network in the populous West African nation.
In the year ended December 2020, the telco’s active data subscribers increased by 7.4 million to 36.3 million, which MTN says was supported by growth in gross connections and the expansion of its 4G network in Nigeria.
In the year, MTN connected 12.2 million new customers to its network, bringing total subscriptions in its biggest market to 76.5 million.
This comes a week after the company announced through its chief finance officer plans to tap the debt market in the first quarter and has applied to the Nigerian Securities and Exchange Commission for approval.
MTN Nigeria intends to issue debt to optimise its funding costs, CFO Modupe Kadri told an analyst call, without disclosing the amount the company intends to raise.
Meanwhile, MTN Nigeria has opened up a N200 billion (US$524.93m) Commercial Paper (CP) Issuance Programme for investors.
Commercial Paper means an unconditional promise by an Issuer/Promoter to pay to the order of an investor, a certain sum at a future date.
According to the telco, proceeds from the Offer will be used for working capital and general corporate purposes of the company.
The minimum subscription for an investor is N1 million (US$2,625) and can go up to N100 billion (US$524.93m). The tenor of the III series is 180 days while the IV series will last 270 days.
It explained that it has a great profit pool and unmatched investments in its infrastructure – the most expansive 2G, 3G, and 4G network, the largest fibre network (c. 29,500km) spanning across Nigeria.
According to a corporate rating issued by Agusto & Co., the company has strong financial performance with record revenue in excess of N1 trillion (largest revenue by a listed corporate).