MTN listing on Nigerian Stock Market in doubt over court cases

Indications have emerged that the proposed listing of MTN Nigeria on the Nigerian Stock Exchange (NSE) might be shelved in the interim as the telecommunication giant faces legal and political pressure.

NEWSVERGE recall that Senator Dino Melaye, representing Kogi West in the National Assembly had last September accused MTN Nigeria of illegally repatriating USD14 billion from Nigeria without due process.

The parent company, MTN Group is said to be considering setting aside the listing plans as the legal tussles arising from the petition seems to be heaping lots of pressure on the company.

Sources with knowledge of the matter at MTN told Bloomberg that the likelihood of a prolonged legal tussle is making MTN Group to pull the plug on the proposed listing which had drawn wide applause across the country.

MTN had in a press statement in September projected that the listing process might be actualised in the third quarter of 2017. This believe made them appoint Stanbic IBTC Capital Limited and a host of other foreign advisers to put together the initial public offering.

Bloomberg source was assured that “MTN remains committed to the listing and will proceed with the share sale when it’s legally and commercially possible”, according to a source at the company’s headquarters.

There have been several spirited efforts at bringing the telecommunication companies in the country to list on Africa’s largest capital market, thus, MTN expression was well celebrated.

It is believed that listing on the NSE is not just beneficial to MTN Group, but it would deepen the market by bringing newer investors and global participation to the market.