MTN Nigeria Communications Plc (NGX: MTNN) is set to execute the allotment of ‘incentive shares’ to qualified shareholders.
The company disclosed this in a corporate action notification published on the Nigerian Exchange.
Recall that in December 2021, 575 million ordinary share on MTN Nigeria held by MTN International (Mauritius) Limited was offered for sale.
To encourage participation in the offer, MTN International offered an incentive of one (1) ordinary share for every twenty (20) ordinary shares purchased and allotted – up to a maximum of two hundred and fifty ordinary shares.
However, there are terms and conditions attached, as buying the shares alone does not automatically qualify a shareholder for the incentive.
To qualify, a shareholder must meet all three conditions listed below:
- Purchased and was allotted at least 20 ordinary shares in the offer.
- Holds some or all of the shares allotted at the offer as at the qualification date, 31 January 2023 but subject to holding at least 20 ordinary shares.
- Name must appear in the Register of Members at the qualification date.
The company said that the incentive shares will be credited to the CSCS accounts of the qualified shareholders after the qualification date and obtaining the requisite regulatory approvals,.
The incentive shares will be issued free of charge to the qualified shareholders and they will also receive dividends on the incentive shares.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
