NSSF to Acquire Shares in MTN Uganda

Mergers, Acquisitions and Financial Results

The National Social Security Fund, NSSF is in negotiations to purchase shares in MTN Uganda, a leading telecommunications firm, Business Power has learnt. Information exclusively available to Business Power indicates that the Fund has already started preliminary negotiations with South Africa's MTN Group, the majority shareholder in MTN Uganda.

The talks are pretty much at a very primary stage, according to sources, but early indicators of a possible outcome appear positive.

MTN Uganda Chief Commercial Officer Eric Van Veen couldn't confirm or deny the impending acquisition of shares by NSSF when asked to comment on the secretive negotiations. David Chandi Jamwa, the managing director of NSSF agreed in an interview with Business Power that they were in talks to get shares in MTN Uganda.

"We are still carrying out a due diligence on the company and shall let you know what follows," Mr Jamwa said recently. He refused to shed more light on several other aspects of the deal on which details are scanty. It's not clear how much equity NSSF wants to acquire in MTN but it's highly unlikely that it will be a controlling stake as the Fund might not afford to throw so much money at a single investment.

Much of the Fund's investment portfolio has traditionally been biased toward real estate and other fixed income assets.

The Monitor