SSNIT receives GH¢ 9.9 million as dividend from MTN Ghana

MTN Ghana, a day after its maiden Annual General Meeting, has paid out a total dividend of over GH¢9.9 million to its third largest shareholder the Social Security and National Insurance Trust (SSNIT).

This follows approval of a final dividend of 3 pesewas per share by shareholders of MTN at the AGM yesterday (May 14, 2019). This brings the total dividend payable to 5 pesewas per share after MTN declared an interim dividend of 2 pesewas per share in November 2018.

Speaking to Citi Business News after receiving the total dividend payout on behalf of SSNIT, the Deputy Director-General in charge of Finance and Administration at SSNIT Michael Addo, said the amount being paid by MTN Ghana in less than a year of investment, is indicative of the telecom company’s strong performance in the past year.

“In July 2018, during MTN’s IPO we acquired about 198.7 million shares at 75 pesewas per share. So if in less than a year they are paying us this (GH¢9,937,274), I would have to say that it is commendable. We would, however, like to see more and we’re confident MTN will deliver in the coming year. ”

On his part, Modupe Kadri, the Chief Financial Officer for MTN Ghana revealed that the 5 pesewas per share total dividend payout represents a majority of the company’s profit after tax for 2018.

“The 5 pesewas per share actually represents an 81.1% payout of the profit after tax and will represent a 14.4 % increase over the dividend we paid in 2017.”

MTN Ghana dividend payouts

The telecom company is the first within the industry to list on the stock market as part of regulatory requirements after the purchase of the 4G spectrum license.

According to a stock market analyst with UMB Stockbrokers, Kofi Busia Kyei the final dividend of three pesewas (GH¢0.03) per share should translate into a total dividend amount of GHS368.7 million. This also follows an initial interim dividend of two pesewas (GH¢0.02) per share, paid to post IPO shareholders of the company in 2018.

In Kofi Kyei’s view, this is the right time for investors to buy shares as trading activities are expected to rebound in the short term. Though the share price of MTN Ghana commenced trading at 75 pesewas in September 2018, it dropped to 70 pesewas per share as at the close of trading on Friday [May 10, 2019].

In 2018, MTN Group’s profit after tax increased by 5 percent. The amount went up from GH¢718.51 million to GH¢754.67 million between 2017 and 2018.

Source: citinewsroom.com

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