Government sealed the deal to sell its stake in MTN Rwandacell as part of its commitment to promote accelerated economic growth and liberalise the market.
According to news reports, the transaction, which was concluded in Kigali last week and brokered by Renaissance Capital, saw MTN Group increase its ownership in MTN Rwanda from 55 percent to 80 percent.
Crystal Ventures Limited and the Government of Rwanda have collectively sold a 25 percent stake in MTN Rwandacell Limited to South African mobile services provider MTN Group Limited (MTN).
Crystal Ventures will retain a 20 percent interest in MTN Rwanda and will remain an active minority shareholder in the company, while MTN Group will increase its controlling majority to 80 percent.
Daniel Ufitikirezi, Head of Asset and Business Management Department at Rwanda Development Board said the initial proposal to float the shares on the capital market was subject to other shareholders.
“Floating the shares is one way of privatisation and we have a range of models, and it depends on other shareholders because they have pre-emptive rights,” he clarified.
According to Ufitikirezi, if a shareholder wants to sell his shares, other shareholders are given priority and if they are not interested, then shares can be floated or sold to any potential investor.
He, however, could not reveal the value of the shares saying that by the time the document was taken to the cabinet, the price was still subject to changes while the valuation was still confidential.
In a statement, Prof Manasseh Nshuti, the Chairman of Crystal Ventures, said his company held its investment in MTN Rwanda since its inception 13 years ago and together created the largest telecommunications company in Rwanda with more than 2.7 million subscribers.
MTN Group President and CEO Sifiso Dabengwa added: “Our increased investment in MTN Rwanda demonstrates our strong commitment to Rwanda and the broader East African region.”