The Independent Uganda: You get the Truth we Pay the Price
This the largest dividend the fund has earned from a listed company in the region this year
Kampala, Uganda | THE INDEPENDENT | Uganda’s National Social Security Fund (NSSF) has accrued Shs 80.6 billion from its investment in telecom firm, MTN Uganda, over the past three years. This follows the latest dividend payment of Shs 39.8 billion for the year ending December 31, 2023.
NSSF Managing Director Patrick Ayota highlighted the significance of the recent dividend, noting it as the largest the fund has earned from a listed company in the region this year.
“MTN Uganda is not only the highest dividend payer across our equity portfolio this year but has also consistently delivered positive growth over the last three years since the IPO,” he said. “We commend MTN Uganda’s management for their commitment to creating shareholder value and focusing on the company’s long-term growth.”
In previous years, the Fund received dividends of Shs 9.3 billion and Shs 31.5 billion for 2021 and 2022, respectively.
“MTN Uganda remains our largest institutional shareholder, and we are privileged to serve the many Ugandans with a stake in the Fund,” said MTN Uganda CEO Sylvia Mulinge during the dummy cheque handover on July 4.
“We are committed to strategic investment and sustainable financial performance to fulfill the Fund’s objectives and goals.”
MTN Uganda continues to demonstrate strong performance, consistently delivering attractive dividends to its shareholders. On June 7, a dividend payment of Shs 6.4 per share, totaling Shs 143 billion, was credited to all registered shareholders through their mobile money wallets and nominated bank accounts.
This followed two interim dividends paid out the previous year in September (Shs 6.0 per share) and December (Shs 5.6 per share), totaling Shs 259.8 billion. The total dividend paid out for the Financial Year 2023 represents a 13.2% increase from the previous year.
NSSF’s further investment
Since the IPO in December 2021, total dividend payments to shareholders have reached Shs 864.4 billion, underscoring the company’s robust performance. Ayota disclosed that NSSF recently invested an additional Shs 90.95 billion to acquire 649,607,910 more shares in MTN Uganda.
“We wanted to buy more, but the offer was oversubscribed,” Ayota noted. This investment followed a secondary market offer for ordinary shares announced on May 27, 2024.
In December 2021, the Fund had already invested Shs 360 billion to acquire 1.98 billion shares in MTN Uganda following its Initial Public Offer (IPO). The latest investment brings the Fund’s total investment to Shs 450.95 billion for 2,629,607,910 shares, solidifying NSSF’s position as the largest indigenous shareholder in MTN Uganda with an 11.7% shareholding.
Ayota emphasized that the additional investment reflects confidence in MTN Uganda and its potential to provide long-term benefits for NSSF members and the country. “The effective price of Shs 140 per share presented an opportunity to invest in a cash-generative business with high growth potential. MTN Uganda plays an integral role in the Fund’s growth and the country’s development, presenting a long-term growth opportunity given its consistently impressive performance,” Ayota said.
Mulinge expressed satisfaction with the outcome of the secondary share offer, which registered a 230% subscription, indicating strong investor confidence in the company’s strategy and performance. “The increased Fund investment in MTN Uganda aligns with MTN Group’s objective to broaden local shareholding in the countries it invests in. The offer provided an opportunity for Ugandan retail and professional investors, including MTN Uganda’s loyal customers, to own a stake in the Company and participate in its future growth,” she said.
Currently, MTN Uganda has 20,636 shareholders, including over 200 smaller pension funds and SACCOs, representing millions of Ugandans.
