MTN appoints advisors on proposed Nigeria market listing

MTN appoints advisors on proposed Nigeria market listing
July 28 17:41 2016

Telecoms giant, MTN Nigeria has taken the first step towards getting listed on the Nigerian Stock Exchange.

The company on Thursday
appointed Stanbic IBTC Capital
Limited and its affiliates as
transaction advisors to undertake
the spade work on its proposed
listing.
The telecoms firm said Stanbic
IBTC Capital Limited would be
exercising the mandate together
with its affiliates, namely The
Standard Bank of South Africa
 Limited and Standard Advisory
London Limited and Citigroup
Global Markets Limited.

MTN said the full syndicate, which
would function as Joint
Transaction Advisors and Joint
Global Coordinators, with Stanbic
acting as Lead Issuing House,
would also include Nigerian
receiving agents, banks and other
advisers to be appointed in due
course, as appropriate.

As part of the conditions agreed
with the Federal Government
through the Nigerian
Communications Commission
(NCC) last month, to settle the
crisis over the $3.4 billion (N1.04
trillion) fine imposed in October
2015, MTN Nigeria had
announced its intention to list its
shares on the NSE as soon as
commercially and legally possible.
“MTN Nigeria is pleased to
announce that its Board of
 Directors has resolved to proceed
with preparations for a listing of
 MTN Nigeria on The NSE”, the 
telecoms firm said on Thursday in
a statement.

As part of preparations, it said it
had established a management
task team charged with the
responsibility of guiding it
towards a listing targeted to take
effect in 2017.

The proposed listing, the MTN 
Group explained, would however
be “subject to suitable market
circumstances and conditions and
the appropriate approvals from
relevant regulators and other
stakeholders.”
The inauguration of the
management task team, it pointed
out, did not constitute an
announcement of an intention to
float MTN Nigeria, saying further
announcements would be made
on this issue at appropriate
intervals on progress.

At the end of negotiations last month over the
crisis that followed the fine saga, both NCC
 and MTN Nigeria had agreed that the
company would pay only N330 billion, out of
the N780 billion it was earlier reduced to,
from the initial N1.04 trillion.

The NCC had imposed the fine after MTN
failed to disconnect5.1 million registered
telephone lines within the prescribed deadline.
In line with the terms of the resolution, the
balance of N280 billion would be paid by MTN
in six tranches between now and May 31,
2019, including payment of N30 billion
immediately within 30 days from June 10,
2016 when the agreement was signed.
Other tranches of payments, in line with the
payment plan, included another N30 billion
by March 31, 2017; March 31, 2018 (N55
billion), December 31, 2018 (N55 billion),
March 31, 2019 (N55 billion) and the balance
of N55 billion on May 31, 2019.