Fidelity bank banner UBA 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: 2,111


 

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...
Why we’re building state-of-the-art schools —Aregbesola •Commissions yet...

Governor Ayade’s aide collapses; rushed to hospital

Ogoni leaders visit Buhari, request state honour for...

The secret behind Coca-Cola’s success in Africa

Lagos announces guidelines for 2017 Hajj pilgrims

Trailer crushes woman near Guardian head office (Lagos)...

Niger Delta fishermen decry encroachment by foreign trawlers...

Lawyers warn EFCC against losing cases, condemn Fani-Kayode’s...

AGF dismisses Senate’s allegation of ‘coup against legislature’...

Leadership crisis, fraud rock fiscal commission

Dickson demands more oil blocs for oil-producing areas...

El-Rufai passes vote of no confidence on NNPC...

 

Latest News FG gets seven-day ultimatum to unfreeze Peter Obi’s account The true story of Boko Haram massacre of troops at Metele — Surviving soldier Igbos may lose 2023 presidency to South-West, says Ngige Oil marketers order shutdown of depots over N800b subsidy debts Lassa fever kills three, afflicts 13 in Edo, Ondo, Gombe, Plateau, Kano Electoral Act: APC, PDP playing games with national stability — Olawepo-Hashim Over 10,000 female children abused daily in Nigeria — Group ‘I pay N100 daily to sleep under Oshodi Bridge: Arrested miscreant APC, party of vagabonds — ASUU Ambode laments killing of 18 LASTMA officers on duty Don’t be selective in fighting corruption, NBA tells FG Calabar carnival to host presidential candidates

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (429,306 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (394,468 views) Shameless Genevieve Nnaji exposes breasts in public (327,408 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (280,759 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (247,586 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (229,141 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (211,888 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (193,135 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (179,362 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (170,316 views) Lagos plane crash: Journalist releases victims’ names (167,066 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (153,577 views)

 

Zenith Zero Balance First Bank chat banking

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (76) Business & Economy (3,870) Business Verdict (54) Columnists (972) Complaints & Requests (95) Enterprise & Opportunities (208) Entertainment (575) Features (679) Global Business Monitor (311) International (2,800) Interview (167) Live Commentary (28) Love Matters (146) Maggie's Blog (64) News (41,307) Opinion (1,150) Pidgin (13) Politics (8,096) Religion (911) Sports (1,812) Stock Watch (35) AMA & Al Jazeera Global Update

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera