Sonatel: 10-for-1 Fractionnement Actions BRVM Approved

• Sonatel's Extraordinary General Assembly approved a 10-for-1 stock split on October 8.
• This operation will increase the number of shares from 100 million to 1 billion while keeping the social capital at 50 billion FCFA.
• The split aims to make the Sonatel stock more accessible to a wider range of investors by lowering its unit price.
• Trading under the new structure on the BRVM is scheduled to begin on Monday, October 26, 2026.
• Existing shareholders will have their holdings automatically adjusted by their banks and depositories without incurring fees.

The primary objective behind this substantial Sonatel stock split is to enhance the accessibility of its shares and to broaden its shareholder base.

Sonatel, a prominent telecommunications company, has received approval for a significant 10-for-1 stock split, an action that will dramatically increase its share count without altering its underlying capital structure. This pivotal decision was ratified by an Extraordinary General Assembly held on October 8, following a period where the company's stock had surpassed 42,000 FCFA on the Bourse Régionale des Valeurs Mobilières (BRVM) in Abidjan, signaling strong investor confidence and increased purchasing activity. The Sonatel fractionnement actions BRVM is set to transform the company's equity landscape.

Under the terms of this Sonatel stock split, every existing share held by an investor will be converted into ten new shares. Consequently, the total number of outstanding shares will escalate from 100 million to one billion. Crucially, despite this tenfold increase in share quantity, the company's social capital will remain fixed at 50 billion FCFA, ensuring that the fundamental value of the company's equity is preserved. This strategic move comes as the action Sonatel Sénégal has been viewed as a safe haven asset by many West African fund managers.

The primary objective behind this substantial Sonatel stock split is to enhance the accessibility of its shares and to broaden its shareholder base. By effectively lowering the unit price of each share, the company aims to make its stock more attainable for a wider spectrum of investors, particularly individual savers within the West African Economic and Monetary Union (WAEMU) region. This strategy is expected to democratize ownership and potentially increase liquidity for the action Sonatel Sénégal.

It is important for investors to understand that this operation will not modify their proportional ownership in Sonatel's capital. Furthermore, the total theoretical value of an investor's portfolio will remain unchanged at the moment of the split, excluding any subsequent market fluctuations. The core principle is that while the number of units held increases, the overall slice of the company owned by each shareholder, and the total value of that slice, remains constant.

The implementation of the Sonatel fractionnement actions BRVM follows a clear timeline established in coordination with the regional stock exchange. The final day for trading shares based on their old nominal value is scheduled for Friday, October 23, 2026. Subsequently, the first day of trading for the newly split shares is set for Monday, October 26, 2026, coinciding with the market's opening. This transition period ensures a smooth adjustment for market participants.

For existing shareholders, the process of adjusting their holdings will be entirely automatic and seamless. Account-holding banks and central depositories are mandated to carry out these adjustments without imposing any fees or requiring any formal procedures from the shareholders themselves. To ensure transparency and provide a clear reference point for the market, the BRVM will officially publish the adjusted reference price in an advisory notice within its Bulletin Officiel de la Cote, reflecting the new per-share valuation post-split. This BRVM Sonatel ajustement is a standard procedure for such corporate actions.

Lawyers advising investors or compliance officers managing portfolios with Sonatel shares should note the upcoming 10-for-1 stock split, which will adjust share counts and unit prices without altering total capital. This requires monitoring the BRVM's adjusted reference price publication and ensuring client holdings and any related regulatory filings reflect the new share structure accurately.

Source: Original reporting via Seneweb.