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Notes to the Group financial statements l Note 9.3 |
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| 9.3 |
Changes in shareholding |
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Changes in shareholding of subsidiaries are transactions that result in increases or reductions in the interest held
in a subsidiary of the Group, but which do not result in a loss of control and are accounted for as transactions
with non-controlling shareholders as disclosed in note 1.3.1. |
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| 9.3.1 |
Current year changes in shareholding |
| 9.3.1.1 |
MTN Côte d’Ivoire SA |
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New licence requirements in Ivory Coast require that 15% of the share capital of MTN Côte d’Ivoire SA be held by an
Ivorian citizen. On 21 May 2015, MTN Mauritius disposed of 8% of its interest in MTN Côte d’Ivoire SA to Teyliom
Global Capital Limited (TGCL), a fellow subsidiary of an entity which already holds a 7% interest in MTN Côte d’Ivoire
SA. MTN Dubai advanced an interest-bearing loan to TGCL in order to effect the purchase. The loan is repayable in
20 years’ time, and is secured by the 8% holding in MTN Côte d’Ivoire SA. The transaction was subject to certain
conditions subsequent at agreement signature date, consequently although the shares were legally sold at that
date, the transaction was only effective on 15 December 2015 for accounting purposes. At a Group level, it is viewed
that an option was granted to TGCL, consequently neither the loan to TGCL nor the disposal of the 8% interest is
recognised. As a result, the legal ownership percentage and the accounting ownership percentage differs by 8% at
31 December 2015. The option resulted in the recognition of an IFRS 2 charge at a Group level. This charge was
capitalised as part of the licence cost as it is considered to be a cost which is directly attributed to the cost of
acquiring this licence. |
| 9.3.2 |
Prior year changes in shareholding |
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The were no transactions with non-controlling shareholders or changes in shareholding of any of the Group’s
subsidiaries during 2014. |
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