MTN Nigeria Lists Shares At N90 A Share From May 16

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MTN
MTN

Barring unforeseen circumstances, MTN Nigeria will list 20,354,513,050 at N90 per share on Wednesday, May 16.

This followed final approval for listing granted MTN by the Nigerian Stock Exchange (NSE) on Tuesday, May 15.

However, Dr. Charles Mekwunye, a Lagos-based lawyer, has filed a suit at Federal High Court in Abuja against Nigeria Stock Exchange (NSE) to stop attempt to list MTN shares on the floor of SEC.

When listed at N90 per share, MTN Nigeria shares will emerge the second largest company on the nation’s bourse after Dangote Cement with market capitalisation of N1.83 trillion.
Listing on the NSE was one of the conditions reached in the resolution of a N330 billion fine placed on the telco by the Nigerian Communications Commission (NCC) for its inability to disconnect improperly registered SIM cards.
A senior management at the NSE, who pleaded anonymity, told the News Agency of Nigeria (NAN) in Lagos that MTN Nigeria application for listing was approved on Tuesday.
The source told NAN that the company had completed all the necessary steps required by the exchange for listing which led to the approval.
The Securities and Exchange Commission (SEC) recently confirmed the approval of MTN Nigeria application to be listed on NSE by way of introduction.
Mrs Efe Ebelo, SEC Head Corporate Communications, said that the commission had approved the company’s application to be listed on the nation’s bourse by way of introduction.
She said that the company had successfully completed the registration of 20,354,513,050 ordinary shares of N0.02 each with the commission.
MTN Nigeria had on May 6 filed an application with SEC and the exchange for listing by introduction. MTN Nigeria recently changed its status from a private company to a public liability company (PLC) ahead of its listing on the exchange.
The conversion was one of the requirements for listing on the exchange. The company had previously announced that it looks to list on the NSE before July, saying it plans to enter the market by way of listing by introduction.
Speaking on the conversion, Fredi Moolman, MTN Chief Executive Officer, said the listing was part of its commitment to localisation in the markets in which it operates.
“Our conversion to a Plc is a major step towards listing by introduction on the Nigerian Stock Exchange in the first half of 2019.
“It is a re-affirmation of our long-term commitment to expanding investment opportunities for Nigerians, in addition to providing everyday services to them.

“We look forward to continuing our engagement with the SEC and NSE to take forward the listing process,” Moolman had said.

Meanwhile, in suit marked as FHC/ABJ/CS/2019, Mekwunye is asking the court for a perpetual injunction restraining SEC from going ahead with the listing of MTN shares, pending the determination of a suit before the Supreme Court bothering on alleged breach of contract in the divestment of MTN assets.

Mekwunye is also praying the court to determine whether SEC can approve the listing of MTN shares in the Nigerian Stock Exchange in view of the pending suit before the Supreme Court.

The plaintiff, in his Motion on Notice of Interlocutory Injunction, also want the court to restrain the defendants or their agents from advertising, publishing or listing MTN shares on the NSE, pending the hearing and determination of the substantive suit.

The plaintiff is also asking the court to direct the defendants to maintain status quo ante regarding the listing of MTN shares and a further order nullifying all approvals given to MTN by SEC and NSE towards facilitating the listing of its shares.

Mekwunye is also praying the court for an order of mandatory/ restorative injunction setting aside and or nullifying all actions taken including notices, resolutions and authorisations by MTN with a view to facilitating the listing of its shares.

Mekwunye had in 2008 dragged MTN, Lotus Capital and Stanbic IBTC Asset Management, IHS Holding LTD and INT Towers Ltd before the Federal High Court over alleged breach of contract in the massive divestment of MTN assets.

Mekwunye claimed at the lower court that MTN through its appointed nominee, Stanbic IBTC Asset Management and LOTUS Capital, defaulted in a share investment agreement with him. He urged the court then, to restrain MTN from listing its shares on the stock market, pending the determination of the suit.

But ruling on a preliminary objection raised by MTN on the competence of the suit, the trial Judge, Justice Mojisola Olateru, asked parties in the suit to explore the arbitration clause embedded in the contract.

Dissatisfied with the ruling of the lower court, Mekwunye filed a motion on notice on February 26, 2018 at the Court of Appeal arguing that an arbitration clause in the agreement between him and MTN cannot be used to determine the suit involving IHS Holdings Ltd and INT Towers Ltd who are not parties to the arbitration clause.

The Court of Appeal in its ruling also asked parties in the suit to pursue arbitration earlier pointed out by the lower court.

Still not satisfied with the ruling of the Court of Appeal, Mekwunye took the matter to the Supreme Court, insisting that the crux of the matter is the failure of the respondents to list MTN shares in NSE in 2011 as agreed by parties and that until the suit is properly determined, MTN ought not to be allowed to list its shares at the stock market.

The Supreme Court is yet to give final verdict on the matter. (NAN)