Africa’s biggest fund manager, Public Investment Corporation (PIC) has reportedly raised its stake in the embattled Telco-giant, MTN, for the second time in many days, taking advantage of plunge in stock price that is close to a 10-year low amid a crisis in Nigeria.
According to Bloomberg, PIC has close to 26 percent shareholding in MTN with report of increase in stake in recent times.
Deon Botha, Head of Corporate Affairs, PIC, said the firm believes that MTN has a strong set of assets and competencies despite the challenges being faced in its largest market.
MTN share price has since plummeted by 19 percent since the Apex Bank, Central Bank of Nigeria, in August alleged that the company had illegally transferred $8.1 billion out of the country. The carrier is also on the hook for $2 billion tax debt in the country.
Although there are signs that there is light at the end of the tunnel as promised by the Central Bank Governor, Godwin Emefiele last week that the two sides are on “the verge” of announcing a deal. This assurance has further boosted investors confidence.
The Pretoria-based Africa’s largest money manager with more than 2 trillion rand under its management is state owned and looks after South African Government worker pension funds.