MTN: 10,051 -96 (-0.95%)
MTN converts Nigerian unit to public company before planned listing
(Adds quote, details)
By Chijioke Ohuocha
LAGOS, April 24 (Reuters) - South African telecoms firm MTN
has converted its Nigerian unit into a public company
before its planned listing on the Nigerian bourse in the first
half of the year.
MTN Nigeria said on Wednesday the conversion was a legal
requirement to prepare for the listing and it was engaging with
the Securities and Exchange Commission and Nigerian Stock
"Our conversion to a Plc is a major step towards listing by
introduction on the Nigerian Stock Exchange in the first half of
2019," MTN Nigeria chief executive Ferdi Moolman said.
Nigeria is MTN's biggest market, with 52.3 million users in
2017, and accounts for a third of the company's annual core
profit, but has proven problematic in recent years.
In December, MTN agreed to make a $53 million payment to
resolve a dispute in Nigeria. The move ended a four-month
multi-billion dollar dividend repatriation row that hammered its
Moolman said last month he expected the listing on the
Nigerian bourse to be "probably more towards April and
The company expects to list the unit without raising money
from investors immediately, and has said it would simplify its
capital structure before the listing.
(Reporting by Chijioke Ohuocha; Editing by Edmund Blair and
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.