Johannesburg - MTN Group may put off plans to list its Nigerian operation
until 2018 as Africa’s largest wireless carrier works to resolve a regulatory
dispute and awaits an economic recovery in the continent’s most populous
country.
“It’s a work in progress and hopefully within the 12 to 18 month period we
will be able to do it,’’ MTN Chairman and Acting Chief Executive Officer
Phuthuma Nhleko said at the annual meeting of the World Economic Forum in
Davos, Switzerland. “Regulatory issues need to be resolved, and the macro
conditions need to have improved.”
MTN agreed to list the unit in Nigeria as part of the settlement of a 330
billion naira ($1 billion) fine imposed by the government for missing a
deadline to disconnect unregistered subscribers. It said in July that the
listing would take place in 2017, subject to market conditions. Since
then, a senator’s allegations that it illegally moved $14 billion out of
the country has threatened to delay the process.
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 contracted for the first
three quarters of 2016 due to lower oil revenue and capital controls deterring
investment.
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“We’ve always intended to list - we have reaffirmed that with the
government,” said Nhleko, who will revert to his previous role as non-executive
chairman when new CEO Rob Shuter arrives in March. “Clearly, we can only list
when the conditions are conducive.”
MTN shares have lost more than a third of their value since the fine was
handed down in October 2015, and the company has overhauled management and
toughened up its approach to regulators as a result. The wireless operator had
about 235 million customers across 22 countries in Africa and the Middle East
as of end September.
MTN share price was little changed at R125.02 as of 10:02 a.m. in
Johannesburg on Friday, valuing the company at R236 billion ($17 billion).
In July, MTN appointed units of Citigroup and Standard Bank to advise on
the Nigeria listing.