Editorial Team

Emmanuel Udom-Managing Editor, Stephen Dijo Philemon-Deputy Editor, Janet Udom-Senior Correspondent, Precious Udom-Senior Correspondent, Williams Ita-Bureau Chief(Akwa Ibom/Cross River), Fabian Idoko-Senior Correspondent

    Manufacturer's Representative Import Export General Merchandise Contract Adress: Araromi Quarters, Owode Area, Ifo, Ogun state, Nigeria P.O.Box 2632, Oshiodi, Lagos Telephone: 2348166719412

    Tuesday, 13 September 2016

    MTN plans to raise $1bn through capital market to pay FG fine

    MTN group is planning to raise about $1 billion in an initial public offering in its largest market Nigeria as part of agreements reached with the federal government in settlement of a record fine slammed on it by the NCC.
    Minority shareholders may sell down their holdings or exit entirely, while MTN may offer a small portion of its stake in the business, one of the people said, declining to be identified because the details are private.
    The Johannesburg-based company is still fine-tuning any offer and no final decision has been made on the amount, the people said. MTN declined to comment.

    The IPO is part of a deal struck with the Nigerian government to pay a 330 billion naira ($1 billion) penalty for missing a deadline to disconnect unregistered subscribers.
    The negotiations over the fine, which has contributed to a 38 percent decline in MTN’s share price since it became public in October, cost 1.3 billion rand in professional-service fees, according to the company.
    Nigeria is MTN’s biggest money spinner, accounting for more than a third of its sales and profit for a company that has a market value on the Johannesburg bourse of 220 billion rand ($15 billion).
    Source: Bloomberg

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