What you need to know about MTN’s $500m share sale

Nigeria’s biggest mobile telecommunications operator, MTN is said to be planning to raise about $500 million from the sale of shares on the Nigeria Stock Exchange (NSE).

According to a new report from Bloomberg that cited sources, MTN could likely dispose off as much as 30 percent of the Nigerian business in the share sale which it intends to use to settle a record fine imposed on it by the government.

Decision to list MTN Nigeria was arrived as part of a June 2016 agreement to pay a $1 billion fine for missing a deadline to disconnect unregistered subscribers amid a security crackdown. The penalty, originally set at $5.2 billion, led to the resignation of the Johannesburg-based company’s then chief executive officer, a first ever full-year loss and a slump in the share price that’s yet to be clawed back.

Here are a few other things you should know:

Advisers

Standard Bank Group Limited and Citigroup are advising the company on the disposal of the shares.

Who will buy the shares?

Most of the shares will be sold to local institutions and individuals. Foreign investors may likely participate to ensure the process is success.

What will be the potential impact?

The share will be the biggest on the Nigerian Stock Exchange after Starcomms Plc, which raised $796 million when it listed in 2008.

When will the share sale commence?

Discussions are ongoing and a final decision has not been made. However, it is expected to happen in 2018.