MTN Plans Nigeria IPO Once $2 Billion Tax Case Is Resolved

Africa’s Biggest wireless carrier, MTN Group Ltd. plans to push ahead with an Initial Public Offering (IPO) of its Nigerian unit once it resolves a $2 billion tax dispute in the country.

Spokesperson of the company, Tobechukwu Okigbo told reporters in Lagos on Wednesday that when the tax matter has been settled, “the board can assign a value to the company and we do an IPO.”

He further said “It is difficult to put a value on it when there is such an issue.”
Nigeria’s Attorney General accused Johannesburg-based MTN of not paying all its taxes in September, and the two sides have yet to reach an agreement, reports Bloomberg.

A court hearing on the matter is scheduled in the country’s commercial capital for March 26. The dispute has cast doubt on MTN’s long-held plans to list the local unit — part of a deal to resolve a separate regulatory tussle in 2016.

The parent company has said it would list its local unit on the Nigerian Stock Exchange by June this year. “We anticipate it in two phases, listing by introduction and IPO eventually,” once the tax issue is cleared, MTN Nigeria Chief financial Officer Kunle Awobodu said Wednesday. According to MTN Nigeria CEO Ferdi Moolman, the listing by introduction could take place in April or May.

Mobile Payments

While the tax and IPO issues rumble on, MTN has received an approval in principle to start mobile-payment services in Nigeria, the biggest of its 20 markets around Africa and the Middle East. Financial services is a key growth market for the carrier due to a scarcity of banks in many parts of the continent and rising takeup of smartphones and data services.
MTN will start selling a new smartphone in Nigeria that costs about 18,000 naira ($49.72), which the company sees as a way of increasing data revenue, according to Moolman.

MTN shares rose 1.4 percent to 96.18 rand at the close in Johannesburg, the fifth consecutive day of gains since it announced a 15-billion rand ($1 billion) disposal plan last week. That included online retailer Jumia Technologies AG, in which MTN is the biggest shareholder, which announced IPO plans in New York on Tuesday.

Source: Bloomberg

The Author

Chinenye Nwabueze

He is a Senior Lecturer in the Department of Mass Communication, Chukwuemeka Odumegwu Ojukwu University, COOU, (formerly Anambra State University), Igbariam Campus.

20 Comments

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  1. That will be nice if they start that…at least every body will have phone

  2. Nwufo Vivian chidimma

    Bless God

  3. Crystal Chinelo Erokwu

    Interesting. Good information and knowledge for me.

  4. Onuorah Adaeze Chidimma

    This MTN company shaaa una get money passs

  5. Okonkwo Isioma Jane

    Biko dey shuld increase dier data rate ..

  6. Nice of them

  7. Chaiiiii

    Mtn everywhere you go!!!!

  8. Okonkwo chukwunonso

    it is a good thing am happy for good plan for MTN IPO plan

  9. Aguinam-Ojukwu Faustina

    This is a good and educative

  10. Egbuwalo Teniola Glory

    Mtn is looking for ways to make more money. Very business savvy

  11. Udogu Ogechi Victory

    Nice write up.

  12. MTN and their scam. Let’s hope this one is true

  13. Mtn will always remain the best

  14. Ibrh Ifunanya Cynthia

    That would be lovely

  15. Omenuko Adaobi Promise

    Finally

  16. Agina Gloria Ebele

    That will be nice

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