Shares in MTN Group extended their winning streak to reach a fresh all-time high of R62,50 in early trade on Thursday on the news that the JSE-listed cellular operator is part of the consortium vying for Egypt’s third mobile-network licence that would compete with Cairo-listed Vodafone Egypt and Orasscom.
The consortium bidding for the third licence includes MTN, Egyptian IT holdings firm Raya, Golden Pyramids Plaza and Stars Communication, it emerged this week. However, the Egyptian authorities are yet to issue a request for participation, while the third operator is only due to roll out as early as 2007 when the duopoly exclusivity period expires.
On Wednesday, MTN collected 3,34% or two rand to R61,80 after rising 1,36% or 80 cents to end Tuesday’s session at R59,80 per share when the news on the Egyptian prospects first emerged.
The company reached its previous all-time high of R61,90 per share on November 22 when there was speculation that the operator was in talks with a potential suitor.
At 10.43am on Thursday, MTN was up 60 cents or 0,97% to R62,40 per share after 566 100 shares had changed hands in 69 deals. The share price is up 15,74% for the month.
An MTN spokesperson said the Egyptian opportunity is in line with the group’s consolidation of its footprint in Africa. In 2005, the operator grew its footprint to 11 by entering five markets including Côte d’Ivoire, the largely untapped Zambia and the sparsely populated Botswana.
Furthermore, the group paid a €500-million licence fee for a 49% stake in Iran’s second mobile operator — its first investment outside Africa — where it is set to launch before September next year.
The group is expected to announce further details of its prospects in Namibia and Tunisia as well as details of Nigeria’s fixed-line opportunities in the next few weeks. — I-Net Bridge