MTN Nigeria Provides Clarity On Its Listing Price and Preference Shares Redemption


Tuesday, May 21, 2019   /  01:55PM  /   MTN Press Release   / Header Image Credit: WebTV


Recall:   NSE Clarifies Concerns on MTN Nigeria's Premium Board Listing


MTN Nigeria Communications Plc (MTNN) is aware of media reports that make a series of allegations about the listing of MTNN on the Nigerian Stock Exchange (NSE). These reports are incorrect and misleading.


MTNN's listing by way of introduction on the premium board of the NSE on 16 May 2019, creates a new telecoms and technology asset segment for the NSE. It also deepens the equity capital markets base of the country, which makes it possible to broaden the shareholding base of MTNN over time. The listing by introduction means that the existing shares of MTN Group (78.8%), the Nigerian investors (19.4%) and other investors (1.8%) are listed. All MTNN shareholders will be free to trade their shares on the NSE.


MTNN met all of the conditions required to list as a member of the Premium Board of the NSE and was required to publish a commencement listing price. The outstanding matter relating to the Attorney General of the Federation created a high degree of uncertainty over the valuation of MTNN, which makes it difficult to determine a Fair price.



Proshare Nigeria Pvt. Ltd.


For MTNN at present. The associated risks and potential returns could not be fairly assessed and priced. As a result, and in the best interest of all shareholders, both the current and future, the commencement listing price was set at N90 per ordinary share, which was determined with reference to the private shares sale transactions by MTNN shareholders over a 180 trading day period.


The N329 billion medium term facility signed in 2013 will be fully paid by November 2019. Therefore, the N200 billion Facility signed on May 17, 2019 forms part of the Company’s new debt program, in line with the medium term business plan of the Company. The new Facility, when drawn down, will be used to support our medium term capital expenditure projects; Fund our working capital needs, meet operational expenditure requirements and position the Company to take advantage of future expansion opportunities.


The preference shares have not been redeemed. The redemption of the preference shares was always envisaged as a necessary part of simplifying the capital structure of the Company ahead of, or soonest after listing. After obtaining necessary regulatory approvals, the preference shares redemption will be taken from the distributable reserves of the Company and paid for with cash generated from its Operations.

Proshare Nigeria Pvt. Ltd.


Visit MTN Nigeria Plc IR Page in Proshare MARKETS


Graph – Year to Date Share Price Movement


Proshare Nigeria Pvt. Ltd.

Table: Unaudited Q1 2019 Results

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

Related News

1.                 NSE Clarifies Concerns on MTN Nigeria's Premium Board Listing

2.                Nigeria Stock Exchange Admits MTN Nigeria Communications Plc to its Premium Board

3.                A Fool’s Guide to the MTN Nigeria’s 2019 Public Listing

4.                MTN Nigeria Receives Approval To List On The Premium Board Of NSE; Listing To Proceed On 16th May

5.                Extracts For MTN Nigeria From The Group Quarterly Statement Update for Period Ended March 2019

6.                MTN Announces Conversion From A Private Company To A PLC

7.                MTN Q1 2019 Conference Call; Key Takeaways, Management Keeps Firm Hand on Profit Machine

8.               MTNN Q1 2019 Analyst Presentation

9.                Extracts For MTN Nigeria From The Group Quarterly Statement Update for Period Ended March 2019

10.            MTN VS AGF: Court Rejects AGF Preliminary Objection

11.             MTN Nigeria Sues FGN and AGF For N3billion

12.            SEC Nigeria Confirms Receipt of MTN Application for Registration of Securities

13.            MTN to List On the NSE Before End of H1, 2019

14.            MTN Nigeria Releases Financial Results For The FYE Dec 31, 2018; Plan To List on NSE By H1 2019

15.             MTN Nigeria Resolves Amicably Issues Relating to Foreign Exchange Remittances

16.            Providing Reliable Connectivity for Businesses: MTN Delivers Cutting Edge Solutions to NNPC

17.             Reports Indicate That Nigeria’s Central Bank and MTN Reach Tentative Agreement On $8bn Fines

18.            MTN Ghana Successfully Completes Its Initial Public Offer

19.            MTN Nigeria – Interim Financials For H1 2018

20.           Neither MTN Nigeria Nor Any of Its Advisers Has Filed Any IPO Application With SEC Nigeria

21.            MTN Ghana Launches Mobile Money Based IPO

22.           MTN Nigeria IPO Teaser – Listing and Precursory Information

23.           MTN Nigeria To List On The NSE; A Promise Fulfilled – OTC Equity Research 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News