MTN discussed share sale of Nigerian unit

File image of MTN's empowerment scheme listing.

File image of MTN's empowerment scheme listing.

Published Nov 28, 2016

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Lagos - South Africa's telecom group MTN

has met with Nigeria's Securities and Exchange

Commission (SEC) to discuss a possible initial public offering

and how it wanted to structure the share sale, the head of

Nigeria's SEC told Reuters.

SEC director general, Mounir Gwarzo, said MTN had discussed

the possibility of issuing various classes of shares to targeted

investor groups. He said the telecom firm was looking at three

different classes, which would be new in Nigeria.

Gwarzo said the commission was willing to support the share

sale as long as it was within local laws and advised the telecom

firm to ensure retail investors were protected.

MTN is the largest mobile phone operator in Nigeria with 57

million subscribers, and the country accounts for about a third

of its revenue.

Africa's biggest mobile phone operator MTN Group has said it

aims to listing its Nigerian unit during 2017, subject to market

conditions, part of an agreement with the Nigerian government.

In June the telecom firm said it would list its local unit

on the Nigerian Stock Exchange after agreeing to pay a reduced

fine of $1.7 billion in a settlement with the Nigerian

government over unregistered SIM cards.

Gwarzo said the company was yet to submit a formal

application for the share sale, he told Reuters.

MTN Nigeria has appointed Stanbic IBTC Capital, Standard

Bank of South Africa and Standard Advisory London, and Citigroup

Global Markets, as joint transaction advisors and global

coordinators, with Stanbic acting as lead issuer. 

REUTERS

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