Crystal Ventures plans to sell its 20% stake in MTN Rwanda

Mergers, Acquisitions and Financial Results

Rwandan investment firm Crystal Ventures is reportedly considering offloading its 20% stake in MTN Rwanda, the country’s leading cellco in terms of subscribers, via an initial public offering (IPO) on the local stock market, The East African reports.

According to the article, sources familiar with the matter have revealed that the investment company has already approached telecoms regulator the Rwanda Utilities Regulatory Agency (RURA) to seek approval for the listing; although negotiations were still at an early stage, Renaissance Capital had already reportedly been appointed as lead transaction advisor.

Robert Mathu, executive director of Rwanda Capital Markets Authority (CMA), confirmed: ‘Crystal Ventures has expressed interest in selling its shares in MTN, but we have not received any formal approach.’ If approved, the deal is expected to generate solid interest among investors, due to the cellco’s robust operational and financial performance, with the cellco dominating the wireless market with more than 3.63 million users by end-September 2013, ahead of rivals Millicom Rwanda (Tigo) and Airtel with 1.79 million and 973,000 subscribers at the same date, respectively.