Fidelity bank banner Bayelsa State banner
MTN moves closer to stock exchange listing

By News Express on 01/03/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,862


 

MTN Group Ltd. has been having a tough time of it in Nigeria, its most lucrative market.

Protesters last week vandalised the company’s headquarters in the capital, Abuja, in retaliation for xenophobic attacks on Nigerians in South Africa, singling it out among more than 100 other Johannesburg-based businesses. It suffered its first-ever loss last year after Nigeria’s regulator forced it to pay a $1 billion fine and disconnect 4.5 million customers for missing a deadline to cut off unregistered subscribers. And in October, a lawmaker’s accusation of illegal money transfers sent its stock price crashing.

Now, Africa’s biggest mobile-phone operator is moving closer to a listing on the Nigerian exchange, a move that could help it regain goodwill among Nigerians and make it less vulnerable to regulatory crackdowns, according to analysts including Eurasia Group’s Amaka Anku. MTN agreed on the listing as part of a deal to reduce the regulatory fine, originally set at $5.2 billion.

“Listing might not be worth it for the company’s balance sheet in the short term,” Anku, a senior Africa analyst at Eurasia, said in an emailed response to questions. “The main benefit for MTN would be increased goodwill from a wider section of the Nigerian population.”

The share sale will probably happen by September next year, after regulatory issues caused delays and the stock market slumped as the economy contracted, MTN Chairman Phuthuma Nhleko said in January. The company, which made 35 percent of its revenue in Nigeria in 2015 and is reporting earnings for last year on Thursday, appointed units of Citigroup Inc. and Standard Bank Group Ltd. to advise it.

The value of a listing “is not something you can quantify in dollars and pounds, or naira and kobo, but it’s a lot when they’re trying to seek approval or if they’re going into some new venture that they need government support for,” said Pabina Yinkere, the Lagos-based head of research at Vetiva Capital Management Ltd. “The level of scrutiny could have been easier had they been on the good books of the government.”

The Nigerian Stock Exchange All Share Index was the world’s worst performer last year among 94 indexes tracked by Bloomberg, losing 41 percent in dollar terms. The market slump came as the economy faced its worst downturn in more than two decades amid lower oil revenue and capital controls that deterred investment.

The chief executive of Nigeria’s stock exchange, Oscar Onyema, has been trying to convince the country’s biggest mobile-phone companies to list for years. Neither Bharti Airtel Ltd.’s local unit, Lagos-based Globacom Ltd., or Abu Dhabi-based Emirates Telecommunications Corp., known as Etisalat, have sold stock in Nigeria.

MTN shares dropped 2.3 percent to 117.01 rand by the market close in Johannesburg Wednesday. (Bloomberg)

Source News Express

Posted 01/03/2017 8:30:39 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Envying the dead, By Tola Adeniyi

IT WASN’T BOKO!: Police confirm Lagos explosion but...

29,581 displaced Nigerians return from neighbouring countries

South-South, South-East Governors vote for One Nigeria

Kano seals deal with 10 companies on power,...

Abuja indigenes demand state, governor

FG deceives Abia lawmakers over N2 billion constituency...

Buhari vs Obasanjo: Group seeks investigation of all...

Presidency orders opening of Maritime University in Delta...

Ship owners demand release of $100m Cabotage fund...

Catholic Church uproots Father Mbaka from Enugu •This...

Emir of Kano wades into Dangote, BUA mining...

 

Latest News Oyetola, Omisore, Adeleke, Adeoti, Akinbade in tough contest as Osun elects new Governor Biafra: IPOB delegation returns from United Nations How I was raped by Ex-Gov. Sylva’s Security Adviser — Victim •PLUS: Court details 2019 Polls: Abdulsalami warns against Nigeria’s disintegration Nigeria in sorry state under Buhari — Turaki •Says country doesn’t need President that treats headache, ear infection in London 2019: EFCC launches offensive against election fraud, tracks campaign financing by parties Why Delta State is peaceful — Okowa •Challenges women to contest for elective positions Tears of joy as Gov. Emmanuel overhauls 88-year-old hospital Fuel scarcity looms as NUPENG, PENGASSAN issue strike notice NEMA: 77,460 displaced, 3,544 houses destroyed by floods in 12 states Shittu, Adeosun: Your Presidency stinks, PDP tells Buhari Ex-SUBEB chairman bags 7-year jail for embezzling N95.5m

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (395,502 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (376,257 views) Shameless Genevieve Nnaji exposes breasts in public (307,901 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,277 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (231,863 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,405 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (199,706 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,320 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,386 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,216 views) Lagos plane crash: Journalist releases victims’ names (157,934 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (146,732 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (63) Business & Economy (3,617) Business Verdict (52) Columnists (932) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (652) Global Business Monitor (301) International (2,417) Interview (165) Live Commentary (28) Love Matters (144) News (39,038) Opinion (1,109) Pidgin (11) Politics (6,679) Religion (870) Sports (1,697) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

I am Imo State's New Governor -- Okorocha's son-in-law Uche Nwosu...

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement