The National Social Security Fund (NSSF) has earned a total of Shs80.6 billion from its investment in MTN Uganda over the last three years.
This followed payment of Shs39.8 billion dividends for the year ended December 31, 2023.
The payment is the largest the fund has earned from a listed company in the region this year, NSSF Managing Director Patrick Ayota said during a media conference at Workers House on Thursday.
“Not only is MTN Uganda the highest dividend payer across our equity portfolio this year, but the company has also been consistent in delivering positive growth over the last 3 years since the IPO. We commend the management of MTN Uganda for its commitment to creating shareholder value while also focusing on the long-term growth of the company,” Ayota said.
The Fund earned Shs9.3 billion and Shs31.5 billion dividends for the years 2021 and 2022 respectively.
Speaking at a ceremony to hand over a dummy cheque to NSSF at Workers House in Kampala, MTN Chief Executive Officer Sylvia Mulinge said: “NSSF Uganda is to date our largest institutional shareholder and MTN Uganda is privileged to serve the many Ugandans who have a stake in the Fund. We remain cognizant of the Fund’s important mandate of ensuring the social security of their stakeholders and we reiterate our commitment of ensuring strategic investment and sustainable financial performance to fulfill the objectives and goals of the Fund,” she said.
MTN Uganda continues to perform positively and consistently return an attractive dividend to its shareholders. In June, the 7th dividend payment of Shs6.4 totaling Shs143 billion was credited to all registered shareholders on their mobile money wallets and nominated bank accounts. This is in addition to the two interim dividends paid out the previous year in September of Shs6.0 per share and Shs5.6 per share in December totaling Shs259.8 billion. The total dividend paid out for the Financial Year 2023 signals a 13.2% increase in payment to our shareholders from the previous year.
Mulinge further noted that since the IPO in December 2021, the total dividend paid to shareholders totaled Shs864.4 billion and that these dividend payments have grown in tandem with the company’s performance.
At the same media briefing, NSSF confirmed that it has invested an additional Shs90.95 billion to acquire 649,607,910 additional shares in MTN Uganda. This followed an offer for the secondary market purchase of ordinary shares announced on May 27, 2024.
The Fund in December 2021 had already invested Shs360 billion to acquire 1.98 billion shares in MTN Uganda following its Initial Public Offer (IPO) in December 2021.
The latest investment brings the Fund’s total investment to Shs450.95 billion for 2,629,607,910 shares, further solidifying NSSF’s position as the largest indigenous shareholder in MTN Uganda with 11.7% shareholding.
Ayota said the additional investment is a vote of confidence in MTN Uganda and is a belief that the company will continue to offer long-term benefits for NSSF members and the country.
“The effective price of Shs140 per share presented an opportunity to invest in a cash-generative business with high growth potential. Also, MTN Uganda plays an integral role in the Fund’s growth and the Country’s development. Equally important, MTN Uganda presents a long-term growth opportunity for us, given its consistently impressive business and financial performance over the years,” Ayota said.
Regarding the secondary offer for the sale of ordinary shares in MTN Uganda, Ms. Mulinge commented that she was pleased with the outcome that registered a 230% subscription. The oversubscription signaled an appreciation of the Company’s strategy and continued positive performance evolution.
“The increased Fund investment in MTN Uganda, aligns broadly with MTN Group’s objective to broaden local shareholding in the countries it invested in. The offer provided an opportunity to all Ugandan retail and professional investors, including MTN Uganda’s loyal customers, to own a stake in the Company and participate in its future growth”, she said.
MTN Uganda currently has 20,636 shareholders with over 200 smaller pension funds and SACCOs representing millions of Ugandans.
