Nigeria: MTN May Halt Listing Over $10B Claims, Investors Bemoan Decision

5 October 2018

Mergers, Acquisitions and Financial Results

Embattled telecommunications firm, MTN, said last week its current face-off with Nigerian authorities might put on hold its listing billed for this year.

The group, which faces a combined $10 billion in claims, said it may no longer raise capital through an initial public offering (IPO) on the Nigerian Stock Exchange (NSE).

Africa's largest mobile phone company is considering other options of trading its shares on the Lagos-based bourse, including a so-called listing by introduction, in which existing shares are listed.

MTN's Chief Financial Officer, Ralph Mupita, in an interview in Johannesburg, said the board still needs to make a final decision.

"The IPO type of listing has become challenging under current market conditions," he stated, adding: "We are exploring other options. The Nigerian business would not get fair value under current realities. The simplest way to go forward would be an introduction on the Nigerian Stock Exchange."

Read more on The Guardian here.