Nigerian woes not over yet as MTN reels
A further devaluation of Nigeria's currency this year could spell trouble for the timing of a listing of MTN shares on that country's stock exchange, analysts have cautioned
A further devaluation of Nigeria's currency this year could spell trouble for the timing of a listing of MTN shares on that country's stock exchange, analysts have cautioned. MTN plans to sell a portion of its shares on the Nigerian Stock Exchange in the second half of next year, part of a peace- offering settlement it reached with Nigerian authorities last year to resolve a bruising $1.1-billion regulatory fine over unregistered sim cards. At the group's annual results presentation on Thursday, chairman Phuthuma Nhleko said a listing in MTN's largest market had always been part of the plan even before the agreement with regulators. "We want to list as soon as practically possible," Nhleko said. But he said better macroeconomic conditions and regulatory clarity were needed for a prospectus to be issued. Mila Mafanya, head of equities at Afena Capital, said the weaker naira, strained consumer spending and the effects of mandatory sim-card deregistrations had led to depressed earnings...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.