Charles Mbire, a Ugandan multimillionaire businessman, has seen the market value of his stake in MTN Uganda decrease by Ush13.4 billion ($5 million) since the start of the year.
MTN Uganda is the largest telecom operator in the country, serving 97 percent of the population and connecting more than 15 million subscribers globally. Mbire owns 3.99 percent of the company, which translates to 894,494,705 shares.
Since the start of the year, shares in MTN Uganda have declined by more than 7.6 percent, from Ush195 ($0.055) to Ush180 ($0.049), resulting in losses for shareholders, including Mbire.
As a result, the market value of Mbire’s stake in the telecom group has decreased from Ush174.43 billion ($49.22 million) at the beginning of the year to Ush161.01 billion ($44.23 million) at the time of writing this report.
This represents a total loss of $5 million for Mbire, who is the richest investor on the local bourse and one of the richest businessmen in the country.
In an effort to consolidate his holdings in the Kampala-based telecom company, Mbire purchased an additional 2,263,930 shares in MTN Uganda on Mon., Aug. 22 in a deal worth more than Ush448.9 million ($117,713).
With this purchase, his equity holding in the Ugandan telecom business increased from 892,230,775 shares, or 3.98 percent, at the start of the year to 894,494,705 shares, or 3.99 percent, at the time of writing this report.
Despite the recent decline in MTN Uganda’s shares, the group remains a profitable subsidiary for MTN Group, particularly in southeastern Africa. It is also an important provider of telecom services in the country, connecting a large percentage of the population.
However, with the market value of Mbire’s stake in the company decreasing, it remains to be seen how the company’s performance will impact his financial standing in the future.