Management of MTN Ghana has disclosed their readiness to purchase the remaining 4G spectrum on offer by the National Communications Authority (NCA).
According to MTN Ghana, the purchase will improve its quality of service delivery and expand its network operations. MTN was initially excluded from purchasing any of the three (2 x 5) megahertz spectrums that the NCA sold last year.
One of the spectrums was purchased at a cost of US$30 million.
Speaking to Citi FM, CEO of MTN, Selorm Adadevoh explains that although the NCA is yet to officially invite other interested companies to purchase the remaining spectrum, it is open to securing it when the offer is eventually made.
He spoke at the company’s maiden Annual General Meeting on Tuesday, May 14, 2019.
Responding to a question posed by Citi Business News on how much the company may be willing to pick up the spectrum, the MTN CEO however advocated fair pricing from the regulator.
“We can’t really comment on what price that we are willing to pay. All we can say is that we need fair pricing when it comes to spectrum…until an offer comes out, we will not be able to pre-determine what we may be willing to pay for,” he said.
Mr. Adadevoh added, “In all of these things there has to be a valuation that will be done on what spectrum and band-with on offer based on that then we can determine how much we as a company will be willing to pay for.”
MTN Ghana to pay shareholders
Shareholders are also to receive three pesewas per share in dividends from the telecom company. The decision was taken by the directors of the company upon the publication of its financial statement for 2018.
However, the stock price of MTN has witnessed a drop of 6.67 percent, for the eight months of trading on the Ghana Stock Exchange.
The disclosures come ahead of the maiden Annual General Meeting of MTN following its listing on the Ghana Stock Exchange.
The telecom company is the first within the industry to list on the stock market as part of regulatory requirements after the purchase of the 4G spectrum license.
Though the share price commenced trading at 75 pesewas in September 2018, it had dropped to 70 pesewas per share as at the close of trading on Friday [May 10, 2019].
CEO of MTN Ghana Selorm Adadevoh reacting to the drop in trading on the stock market on Joy FM said, "if you look at the business performance and let's separate that from the trading activities on the stock exchange, short term movements are very different from long term expectations and we need to keep that in mind as a shareholder"
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