Telecom

MTN May Stop Proposed IPO Over $10Bn Demand By Nigeria

In the midst of facing a combined $10 billion in claims from the Nigerian authorities, MTN Group Ltd said there might no longer be a need to raise capital through an initial public offering on Nigeria’s stock exchange.

Africa's mobile operator giant is now exploring other options of trading its shares on the Lagos-based stock market, including listing by introduction.
 
In an interview in Johannesburg, MTN’s Chief Financial Officer, Ralph Mupita declared that MTN’s board is weighing its options and still needs to make a final decision

Mupita said that the IPO type of listing was not doing well under current market conditions and that MTN would be exploring other options because a fair value would not be reached under current market conditions. He added that an introduction on the Nigerian Stock Exchange seemed to be the best idea going forward.

MTN’s stock took a nose-dive when the news broke about a scuffle with the Nigerian Central Bank over the repatriation of $8.1 billion out of the country and another clash with the country's attorney general’s office over $2 billion in back taxes. Two years ago MTN was fined over unregistered SIM cards. To resolve this matter, MTN had negotiated a $5.2 billion fine down to an estimated $1 billion and as part of the settlement had agreed to list the business on the local exchange.


 

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