Well, this is awkward, but we’re going ahead: MTN on Nigerian IPO
Lagos — A $10.1bn demand by Nigerian authorities from MTN makes its planned debut stock market listing in the country "pretty challenging and awkward", the group’s CFO said on Wednesday. Nigeria’s central bank has asked MTN to repatriate $8.1bn in monies sent abroad, claiming the funds were sent without proper certification. The company is also facing a $2bn tax demand. MTN has denied any wrongdoing. Ralph Mupita said preparation of the company’s initial public offering (IPO) prospectus is far advanced. "We are not sitting here saying the listing is off. The listing is to remain on track," he told CNBC Africa television. "It makes the IPO that we had planned pretty challenging and awkward but we have got to explore other options of continuing to meet the listing requirements," he said. MTN has said it will engage with the central bank over the demand. It said the monies sent out of the country were equity dividends. Sources have told Reuters that the scale of the central bank’s dema...
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