COMPANY OVERVIEW

MTN Ghana Limited (the “Company") is a subsidiary of MTN Group a leading provider of telecommunications services in Africa and the Middle East. MTN Group entered the Ghanaian market following the acquisition of Investcom in 2006. The Company offers leased line services; mobile services; mobile money services, Internet and data centre solutions, including colocation hosting services.

INVESTMENT CASE

Strong brand with a durable competitive advantage: MTN's brand is adjudged one of the most valuable brands in Ghana and in the world. Its strong brand presence facilitates continuous flow of business and market dominance in all segments of the telecommunication business. In addition, MTN's high EBITDA margin, which averages 39.2% from 2013-2017, gives it a competitive edge- in the telecom industry - to withstand price competition and market share declines.

Market leadership in high growth segments of the Telecommunication industry: MTN is the largest telecommunication company in Ghana, with an enviable market leadership in mobile money transactions of about 93.9% of total transaction volume, internet data & digital market share of 56.5% and cellular voice network coverage of 47.6% market share. MTN's leadership in these fast growing nascent business lines provides tremendous opportunity for shareholder value creation.

Prospects of high liquidity for listed MTN shares: The listing of 35% shares of the company and pricing of unit shares at GHS 0.75 provides opportunity for increased trading activities when listed. This will facilitate effective trade execution and price discovery. This will also enable both institutional and retail investors to purchase and sell shares at fair market prices.

SHAREHOLDING STRUCTURE

Majority of the company's shares are owned by Investcom Consortium with 97.55%. The other shareholders are Zent with 2.35% and MTN Dubai Limited with 0.10%.

KEY FINANCIAL HIGHLIGHTS

1. MTN Ghana is the most profitable unit of the MTN Group in terms EBITDA margin and ROE

2. High growth high margin business

RECOMMENDATIONS

We recommend the purchase of MTN shares for clients portfolio based on the following reasons:

1. MTN offers a great exposure to the booming telecommunication industry, with mobile money and data sales been the main growth drivers.

2. Shares of MTN Ghana are fairly valued relative to trading multiples and market capitalization of its listed mother company -MTN Group.

ADVICE TO CLIENTS

We advise that clients purchase shares of MTN in two tranches. The first tranche of the purchase should be done during the IPO (primary market), while the second tranche done through the exchange (secondary market) after listing. This will help clients mitigate any downside associated with post IPO price fluctuations. In view of this clients are advised to create a brokerage account to facilitate effective trading.