MTN to increase employee shareholding to 5%

Scancom Limited
Mr. Selorm Adadevoh, CEO-MTN
  • approves GH¢1.4billion dividend payment for FY 2021

Scancom Limited, operator of MTN, is set to increase the total number of shares allocated under its employee share scheme from 4.4 percent to 5 percent of its issued share capital.

The move, which was approved as a special resolution at the firm’s 4th Annual General Meeting (AGM) in Accra – and serves as a key component as MTN seeks to further deepen the localisation process of its ownership, will see the employee allocation jump to approximately 615 million shares of the telco’s outstanding 12.3 billion shares.

MTN introduced the scheme at Extraordinary General Meeting in December 2020, in line with regulatory requirements, with an initial 12.5 percent of shares floated on the Ghana Stock Exchange (GSE) at its Initial Public Offering (IPO) and a subsequent agreement with the government to sell another 12.5 percent to Ghanaians, bringing the minimum local shareholding to 25 percent.

The telco has subsequently committed to further increasing the slice of its local ownership to 30 percent, with its first-quarter results indicating that it had reached 23.7 percent – with the 30 percent target set for year-end 2022.

Describing it as an action in the right direction, Chairman of the Board-MTN, Dr. Ishmael Yamson, said the company will continue to challenge itself and lead the advancement of the industries wherein it operates.

Listing MoMo Ltd.

Quizzed on the possibility of listing its mobile money arm – Mobile Money Limited – as a means of expanding the localisation agenda, Chief Executive Selorm Adadevoh said it is not in the immediate plans of his outfit.

“The question of listing Mobile Money is a little premature at this point because the first step as a listed company, in terms of Scancom, is to get the localisation to 30 percent. That is the commitment we have made; currently, this is what we are pursuing. So, listing MoMo is not under consideration; but in due course, if anything changes, we will certainly update shareholders on the plans going forward.”


MTN approved a total dividend of 11.5 pesewas per share on its outstanding 12.3 billion shares, to be paid for the full-year period ended December 2021.

The figure, consisting of an interim dividend of 3 pesewas and a final dividend of 8.5 pesewas, amounted to a GH¢1.4billion or 70.6 percent of the firm’s GH¢2billion in profit after tax for the year under review.

Responding to concerns that the sizeable dividend payout could jeopardise reinvestment in the business and stifle growth, Mr. Adadevoh explained that the ratio is consistent with MTN’s historical payout and offered assurance that the company had taken its outstanding commitments into consideration before arriving at the decision.

“In prior years, we have paid out similar levels and we continue to invest positively in our growth; and that can be seen in our CAPEX investment for the past year, which was about GH¢1.5billion. We look at our cash-flows, investment plans, requirements and covenants that need to be met before determining what percentage of dividends are to be paid and there will be no impact on our growth,” he remarked.


On the impact of the E-levy on its operations, the MTN CEO said the telco will develop strategies to offset the short-term changes in consumer behaviour.

‘It is still early days yet, and as we monitor changes in consumer behaviour we will also develop the requisite strategies to protect the medium-term potential of the mobile money industry.  We continue to observe, learn and see how things go. We acknowledge there will be short-term impacts for a number of months, and in that window the strategies will be developed,” he said.


In 2021, MTN saw its total revenue grow by 28 percent year-on-year (YoY) to hit GH¢7.72billion. This was driven almost entirely by service revenue, which saw a similar YoY growth of 28.5 percent to close the year at GH¢7.7billion.

Also, earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 33.7 percent to GH¢4.24billion, as pre-tax profit almost doubled at 44 percent to reach GH¢2.85billion.

At the beginning of trading in the final week of May, MTN’s share price remained flat at GH¢0.90, resulting in a market capitalisation of GH¢11.1billion.

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