RPF is looking for cash. Whatever became of plans to sell 51% of Inyange to Brookside— Kenyatta family food processing empire? I guess the Kenyattas took a close look and decided not to engage with too many unknowns. Rwanda is an unpredictable and mysterious place. No one knows for sure what those RPF companies are worth – they never issue annual reports.
But for MTN Rwanda’s worth, begin guessing from the concrete facts available from MTN South Africa, the parent company. Back in 2011, RPF raised cash by selling its shares to MTN South Africa. That is how MTN South Africa increased its share of MTN Rwanda from 55% to 80% leaving only 20% to RPF.
As shown here, MTN South Africa paid RPF R487 million. In 2011, the Dollar-Rand conversion rate was about $1=R8.3. Which means RPF made $58.6 million.
From this, we can do a bit of calculation. If MTN South Africa paid RPF $56.6 million for 25% of MTN Rwanda (80-55), then what is the 20% that RPF still owns worth?
My guess is that what RPF still owns (20%) is roughly in same ball park – $60-70 million assuming MTN has been performing well in the increased competition in Rwanda.
What do other people think? This is my take.
Dr David Himbara