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MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by BrandSpurNG: 6:05am On Oct 03, 2018
MTN Group Ltd., the wireless carrier facing a combined $10 billion in claims from authorities in Nigeria, said it may no longer seek to raise capital through an initial public offering on the country’s stock exchange.

Africa’s largest mobile carrier is reconsidering the IPO amid a dispute with authorities in its biggest market that wiped more than a third Off the company’s market value over three weeks. MTN pledged to list-the shares after being fined $1 billion for not disconnecting SIM cards two years ago.

MTN is looking at other ways to trade the stock in Lagos, including a so-called introduction, in which existing shares are Listed, Chief Financial Officer Ralph Mupita said in an interview in Johannesburg. MTN’s board still needs to make a final decision, he said. MTN’s Nigerian shares already trade over the counter.

“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 is the simplest way forward, he said.

MTN could complete the listing by the end of this year or first quarter of 2019, the CFO said. Despite the dispute with the central bank over the repatriation of $8.1 billion out of Nigeria and a separate tussle over $2 billion in back taxes, MTN is committed to a listing, said Mupita.

“We have sought legal protection for our Nigerian business and a judge has been appointed for upcoming hearings,” Mupita said. The central bank last week said it is considering new information provided by MTN and four banks into the outflows and that it expects to resolve the matter soon.

MTN’s shares pared an earlier gain of as much as 3.7 percent to close 2.1 percent higher at 89.40 rand in Johannesburg on Monday. In the weeks after Nigerian authorities challenged the transfer of funds, MTN plunged 35 percent, but the stock has since recovered about half of that drop. “That cost our shareholders $5.5 billion,” said Mupita. MTN’s investor base is about 44 percent South African. Other major shareholders are based in the U.S., the U.K., Europe and the Middle East.

MTN still sees a great business case for Nigeria, Africa’s most populous nation, with less than a third of users currently 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 for foreign companies,” Mupita said.

Nigerian authorities have come under criticism following an impasse with MTN and lenders including Citigroup Inc., Standard Chartered Plc, Standard Bank Group Ltd. and Lagos-based Diamond Bank Plc that threatened to spook investors.

“Investors are getting very nervous and the last thing Nigeria needs is for investors to be Nervous,” said Bismarck Rewane, chief executive officer of Financial Derivatives Co., speaking from Lagos. The government should resolve the issue with MTN “as quickly as possible.”


SOURCE : https://brandspurng.com/mtn-considers-scrapping-ipo-following-dispute-with-nigerian-authorities/

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by cooldipo(m): 7:23am On Oct 03, 2018
Na Shakara!

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by September13: 7:24am On Oct 03, 2018
Blah blah blah blah blah


Thief of the day and night


Do something about my data or I send this to una

4 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Triniti(m): 7:24am On Oct 03, 2018
Stealing from Nigerians since the days of obj
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by gwmlogistic: 7:24am On Oct 03, 2018
Ok ooo
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Nobody: 7:24am On Oct 03, 2018
They shouldn't o. MTN is a viable business to invest in.

Only on borrowed credit with 15% interest, do you know how many people borrow credit in this country?

12 Likes 2 Shares

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by FYB(m): 7:24am On Oct 03, 2018
wink
When you hear the volume of Money they cash in daily in Nigeria, you wonder why they still stoop low by stealing from their subscribers. I hate to subscribe MTN data.

Whether dey drop IPO or DPO or APC e no consign me

17 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Bryan12(m): 7:25am On Oct 03, 2018
What is IPO?

I know I didn't read the thread lipsrsealed

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by MrWondah(m): 7:28am On Oct 03, 2018
Bryan12:
What is IPO?

I know I didn't read the thread lipsrsealed
International poo offer.
Like recharge 50 to get 500

10 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by wolesmile(m): 7:28am On Oct 03, 2018
So, we should go and be crying because of that. As if their public offer was to the common man's benefit before.

2 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Realname: 7:29am On Oct 03, 2018
If they do they loose

It's a bluff

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by PassingShot(m): 7:29am On Oct 03, 2018
Bryan12:
What is IPO?

I know I didn't read the thread lipsrsealed
You also didn't read your book while at school.

cool cool cool

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by olatade(m): 7:29am On Oct 03, 2018
Bryan12:
What is IPO?
I know I didn't read the thread lipsrsealed


investigation police officer

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by lollmaolol(m): 7:29am On Oct 03, 2018
If our government continue to strangle companies especially multinationals like MTN, they are directly:

1. Sending wrong signal to investors to stay away from Nigeria and;

2. Chasing away the blue chip companies and encouraging outsourcing of staff.

6 Likes 1 Share

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Ijaya123: 7:29am On Oct 03, 2018
MTN trying to be clever by half.

What they dare not contemplate in South Africa.

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Ijaya123: 7:30am On Oct 03, 2018
Bryan12:
What is IPO?
lipsrsealed

Initial Public Offer.

4 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Praktikals(m): 7:31am On Oct 03, 2018
Bryan12:
What is IPO?

I know I didn't read the thread lipsrsealed
Obviously, you didnt.
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by dangoteinlaw: 7:32am On Oct 03, 2018
kennygee:
They shouldn't o. MTN is a viable business to invest in.

Only on borrowed credit with 15% interest, do you know how many people borrow credit in this country?
only ppl without their thinking faculty borrow from mtn, period

6 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by rman: 7:34am On Oct 03, 2018
The smart way to go.

If they go to the stock exchange now, they will not be getting the true value for the listed shares. The announcement plunged the share value by more than 35% , ant right thinking business, especially a very strong brand like MTN will not rush to list under such circumstance.

5 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by aze(m): 7:34am On Oct 03, 2018
Institute for Policy Order

Bryan12:
What is IPO?

I know I didn't read the thread lipsrsealed
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by ClassicMG(m): 7:35am On Oct 03, 2018
lollmaolol:
If our government continue to strangle companies especially multinationals like MTN, they are directly:

1. Sending wrong signal to investors to stay away from Nigeria and;

2. Chasing away the blue chip companies and encouraging outsourcing of staff.
should the government now overlook their wrong doing all in the name of keeping investors?

9 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by nelsonebby(m): 7:38am On Oct 03, 2018
Fine them for nothing. Don’t like these South African companies

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by lollmaolol(m): 7:40am On Oct 03, 2018
ClassicMG:
should the government now overlook their wrong doing all in the name of keeping investors?

No

There are better option.
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by ClassicMG(m): 7:41am On Oct 03, 2018
lollmaolol:


No

There are better option.
like?
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by spafu(m): 7:42am On Oct 03, 2018
That's serious
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by lollmaolol(m): 7:42am On Oct 03, 2018
ClassicMG:
like?

ClassicMG go to work!
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by missjane: 7:43am On Oct 03, 2018
Una de waste time launch Una own Crypto currency like btc..n raise investors without the government's interference..holders of your coin will be entitled to dividends...anyone can buy them n sell them in the open market

4 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Nobody: 7:44am On Oct 03, 2018
Is that why their 4G is as slow as 2G? In any case the Nigerian Authorities are right on this. As for the Rewane guy, shame on him, his statement reeks of someone who has just been bought over...does he understand the effect of the MTN tax evasion on the Nigerian economy and the unhealthy precedence it sets for other so called investors? What investors need are tax break not tax evasion...MTN can not try this same rubbish in the US or UAE for that matter.Worse still is MTN doing business in Nigeria all these years and not being listed on the Nigerian Stock Exchange...that has been undermining the Nation and trust me, the Nigerian Authorities have been lenient with the penalty. Solid economies defines Nations Politically on the global stage, we are not yet on the part to industrialization self.

5 Likes

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Nobody: 7:47am On Oct 03, 2018
lollmaolol:
If our government continue to strangle companies especially multinationals like MTN, they are directly:

1. Sending wrong signal to investors to stay away from Nigeria and;

2. Chasing away the blue chip companies and encouraging outsourcing of staff.
Oga, what investors need are tax break not tax evasion... what's the point of having this same blue Chip companies trading in our country again?
Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Nobody: 7:58am On Oct 03, 2018
rman:
The smart way to go.

If they go to the stock exchange now, they will not be getting the true value for the listed shares. The announcement plunged the share value by more than 35% , ant right thinking business, especially a very strong brand like MTN will not rush to list under such circumstance.
hmm, you got a point there... except the Nigerian Authorities have given them a window time frame?

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by Nobody: 8:02am On Oct 03, 2018
They have to. They can't make all the dollars here and not share the profit with Nigerians, given their size. Haba!

1 Like

Re: MTN Considers Scrapping IPO Following Dispute With Nigerian Authorities by FarahAideed: 8:09am On Oct 03, 2018
Shallow Nigerians don't know it's everyday Nigerians that pay these extortionist fines and not MTN per say... We have to say no to Buharis extortion of multinationals for no reason how can you fine just one company over 15 biilion dollars in 3years... MTN is now rated credit negative by fitch

3 Likes

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