Mobile Telecom company, MTN Nigeria, may have put off plans to list on the Nigerian Stock Exchange (NSE) until 2018, due to some unresolved regulatory glitches with the Nigerian authorities.
The decision was also affected by the current economic recession in the country, which the company believes would have eased off considerably by next year.
The unresolved issues centre around the recent allegation by a member of the Nigerian legislature that MTN illegally moved $14 billion out of the country.
Bloomberg quoted the company’s acting Chairman and Chief Executive Officer, Phuthuma Nhleko, in an interview at the annual meeting of the World Economic Forum in Davos, Switzerland, as saying: “It’s a work in progress and hopefully within the 12 to 18 month period we will be able to do it.
“Regulatory issues need to be resolved, and the macro conditions need to have improved.”
“We’ve always intended to list — we have reaffirmed that with the government. Clearly, we can only list when the conditions are conducive.”added Nhleko, who will revert to his previous role as non-executive chairman when new CEO, Rob Shuter, arrives in March.
MTN agreed to list 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.
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.
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