GTB 737 banner Yudala banner

MTN moves closer to stock exchange listing

By News Express on 01/03/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 1,000


 

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


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
British trade delegation storms Anambra

Cults turn Akwa Ibom to war zone

Abuja nurses begin warning strike, to indefinitely paralyse...

Bill Gates tipped to become the world’s first...

AIDS agency discovers 642 sex spots in Anambra...

Bayelsa Guber: Card reader rejects Ex-President Jonathan, Governor...

Work harder to develop revenue-generation potential of IT...

Abia donates 20 patrol vehicles to police

Niger declares 3-day mourning for Ex-Governor Kure

Twist in the tale: Abducted schoolgirls yet to...

APGA ends PDP’s dominance in Abia House of...

EFCC docks Poly graduate over $267k love scam...

 

Latest News UN announces job openings for young Nigerians Court freezes, orders forfeiture of accounts without BVN Digitisation of Broadcasting: Any progress? Cultists murder 2 brothers for failing to produce sibling for initiation •Family lives in fear Air Force bombers scatter gathering of insurgents, set structures on fire Super Eagles, Argentina to clash on Nov. 14 250,000 Nigerian women die of cancer annually Southern Governors meet in Lagos 21,650 write UI post-UTME exam Shehu Sani dares Buhari to include cabals in lists of looters Africa’s vision getting close to reality — UN General Assembly President Being Aare Ona Kakanfo doesn’t mean I’ll die early, says Gani Adams

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (287,800 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (270,478 views) Shameless Genevieve Nnaji exposes breasts in public (218,379 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (183,800 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (179,518 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (162,255 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (140,600 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (128,752 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (123,659 views) Lagos plane crash: Journalist releases victims’ names (114,201 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (112,181 views) APC cries foul as PDP’s Fayose takes early lead in Ekiti governorship election (104,537 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (30) Business (2,731) Business Verdict (24) Columnists (758) Complaints & Requests (93) Enterprise & Opportunities (183) Entertainment (396) Features (497) Global Business Monitor (187) International (1,585) Interviews (134) Live Commentary (28) Love Matters (79) News (29,520) Opinion (826) Pidgin (8) Politics (3,989) Religion (645) Sports (1,340) Stock Watch (23) AMA & Al Jazeera Global Update

 

UBA mobile app

CBN Words on marble

 

 

#MonkeyPox outbreak

 

APO Group Partner

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!