MTN Group has kick-started the process of listing its biggest subsidiary, MTN Nigeria, on the Nigerian Stock Exchange (NSE). It said it intends to float the shares “as soon as commercially and legally possible”.
The South Africa-headquartered telecommunications group agreed to list its Nigerian subsidiary as part of an agreement reached with Nigeria’s government to settle a fine imposed by regulators in the West African nation.
The fine, which has been reduced substantially from the original 1,04 trillion naira (R46,7bn at the time of writing), was imposed by the Nigerian Communications Commission after MTN failed to disconnect more than 5m unregistered Sim cards.
“MTN Nigeria is pleased to announce that its board of directors has resolved to proceed with preparations for a listing of MTN Nigeria on the NSE as soon as commercially and legally possible and has established a management task team with the responsibility to guide the company towards a listing,” the group said in a statement to shareholders on Thursday morning.
“At present, MTN Nigeria is targeting that the listing takes place during 2017, subject to suitable market conditions.”
The company has appointed Stanbic IBTC Capital, together with its affiliates — the Standard Bank of South Africa and Standard Advisory London — and Citigroup Global Markets as its joint transaction advisors and joint global coordinators. Stanbic and its affiliates will act as lead issuing house. Nigerian receiving agents and receiving banks as well as other advisers will be appointed in due course, as appropriate, MTN said.
“The proposed listing would be subject to suitable market circumstances and conditions and the appropriate approvals from relevant regulators and other stakeholders,” it said.
MTN Group’s share price closed at R144,05 on the JSE on Wednesday. The counter has declined by 29,6% in the past year on investor worries about the Nigerian fine and the impact of an economic slowdown in its key markets of Nigeria and South Africa. — © 2016 NewsCentral Media
