MTN Targets Year-end for NSE Listing
Signs mobile banking partnership with Ecobank
The MTN Group Limited yesterday disclosed that the planned listing of its Nigerian subsidiary on the Nigerian Stock Exchange (NSE) will be done by the end of this year.
The chief executive officer of the MTN Group, Rob Shuter was quoted by Bloomberg to have said this.
The group had suggested in November that the process would be concluded by midyear.
“We are progressing very well with the Nigerian listing and if market conditions are appropriate, we will conclude that by the end of the year,” Shuter said.
He declined to provide more details on the process.
MTN agreed to the Nigerian Stock Exchange initial public offering as part of the settlement of a $1 billion fine imposed by local regulators in 2015.
Africa’s biggest wireless operator by sales incurred the penalty after missing a deadline to disconnect unregistered subscribers amid a security crackdown in the West African country. Nigeria is the largest of the company’s 22 markets across Africa and the Middle East.
MTN is planning to raise at least $500 million from the sale of shares, people familiar with the preparations for the listing said. The company could dispose of as much as 30 per cent of its Lagos-based unit, the people, who asked not to be identified as the details aren’t public, said in February.
MTN is also preparing to list a 35 percent stake of its local unit in regional neighbour Ghana, part of a deal with the government to use fourth-generation spectrum, a high-speed mobile data service.
“The Ghana IPO is well advanced,” Shuter said, declining to provide details. “We will make the specific announcement of that in accordance with the IPO schedule.”
MTN is targeting close to $800 million dollars with the listing, which would be more than 10 times bigger than the country’s largest IPO to date, people familiar with the matter said in March.
Meanwhile, MTN has signed an agreement to form a partnership with Ecobank on mobile banking across Africa, the telecoms group and lender said on Tuesday.
The partnership enables both companies to leverage each other’s assets that will ultimately offer more value to their respective customers across the continent.
MTN’s large subscriber base, comprehensive distribution, innovative digital products and drive for mobile financial services are being linked with Ecobank’s digital banking products to provide instant bank accounts and remittances through Africa’s largest bank by network.
The two entities, with an extensive footprint on the continent, have signed a Memorandum of Understanding to develop this partnership agreement, which will allow them to innovate and enhance access to affordable financial services via MTN Mobile Money and Ecobank Banking services.