Fidelity bank card banner Camano banner
MTN rethinks Nigerian IPO strategy

By Lon Prinsloo on 02/10/2018

Views: 414

•MTN Group CFO, Ralph Mupita
•MTN Group CFO, Ralph Mupita

MTN Group, the wireless carrier facing a combined $10bn in claims from authorities in Nigeria, says it may no longer seek to raise capital through an initial public offering on that country’s stock exchange.

Africa’s largest mobile carrier was considering other ways to have its stock traded in Lagos, including what is known as an introduction, in which existing shares are listed, CFO Ralph Mupita said in an interview in Johannesburg.

MTN’s board still had to make a final decision, he said.

"The IPO type of listing has become challenging under current market conditions," Mupita said. "We are exploring other options. The Nigerian business would not get fair value under current market conditions." A listing by introduction was the simplest way forward, he said.

MTN could complete the listing in its biggest market by the end of this year or first quarter of 2019, the CFO said.

The company’s stock has plunged in the wake of a dispute with the central bank over the repatriation of $8.1bn out of Nigeria and a separate tussle over $2bn in back taxes. Listing the business in Lagos forms part of a settlement two years ago over unregistered SIM cards, when MTN negotiated a $5.2bn fine down to about $1bn.

"We have sought legal protection for our Nigerian business and a judge has been appointed for upcoming hearings," Mupita said. Nigeria’s central bank said last week said it was considering new information provided by MTN and four banks into the outflows and that it expected to resolve the matter soon.

MTN’s shares pared an earlier gain of as much as 3.7% to trade 2.3% higher at R89.59 at 3:57pm in Johannesburg on Monday. In the weeks after Nigerian authorities challenged the transfer of funds, MTN plunged 35%, but the stock has since recovered about half of that drop. "That cost our shareholders $5.5bn," said Mupita.

MTN’s investor base is about 44% South African. Other major shareholders are in the US, UK, Europe and the Middle East.

MTN still sees a great business case for Nigeria, Africa’s most populous country, with less than a third of users on the internet, Mupita said.

"We are engaging with authorities and investors and hope to reach a speedy resolution on the matter, to deal with the overhang on our share and the concerns of shareholders about Nigeria’s investment climate," Mupita said.

Nigerian authorities are changing their tone after coming under criticism that the impasse with MTN and lenders including Citigroup, Standard Chartered, Standard Bank Group and Lagos-based Diamond Bank threatened to spook investors. (BusinessDay SA)

Source News Express

Posted 02/10/2018 12:13:19 PM





You may also like...
APC mocks Saraki over crashed presidential run •Face...

Wike sues FG, IOCs over soot pollution •Accuses...

Nigeria’s Osi Umenyiora to marry ex-Miss Universe

Alleged ill health: Akunyili thanks Nigerians, returns soon...

Expect poor visibility in the North today, cloudy...

Kwara workers refuse to suspend strike

Facebook, Twitter remove accounts linked to Iran, Russia...

Business School Netherlands honours Adelusi-Adeluyi, Nike Adeyemi and...

Cancel Transcorp Hotel IPO, shareholders tell SEC and...

Telecoms group frowns at Unsolicited Messages Bill, says...

Group condemns killing of Igbo farmers by Fulani...

Amaechi spent $150m to fund APC’s campaign for...


Latest News No going back on Ruga settlement project― Niger State Buhari orders immediate payment of N30,000 minimum wage to Federal workers Recruitment: Navy releases list of successful candidates Northern Elders Forum, CNG order Fulani herdsmen back to North Amnesty Programme profiles 308 beneficiaries for employment Olakunrin’s killing: Ethnic groups may resort to self-help ― Alaafin NYSC investigates fake graduates Election Tribunal: INEC, APC, Buhari tender video to counter allegation on server NIPOST workers suspend planned warning strike Nigerian situation extremely worrisome, on brink of disaster — Anyaoku Banditry in North-West may have international dimension —Yuguda Declare state of emergency on security, PDP tells FG


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (508,154 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (430,974 views) Shameless Genevieve Nnaji exposes breasts in public (372,708 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (316,338 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (281,788 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (246,880 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (238,585 views) 10 cars more expensive than Jets (222,203 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (220,707 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (208,316 views) Lagos plane crash: Journalist releases victims’ names (187,985 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (186,644 views)


NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (96) Business & Economy (4,354) Business Verdict (76) Columnists (1,070) Complaints & Requests (95) Enterprise & Opportunities (211) Entertainment (634) Features (778) Global Business Monitor (395) ICT Monitor (53) International (3,714) Interview (192) Live Commentary (30) Love Matters (163) Maggie's Blog (338) News (48,697) Opinion (1,290) Pidgin (17) Politics (11,158) Religion (1,049) Sports (2,097) Stock Watch (39) AMA & Al Jazeera Global Update






APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera