• Tuesday, July 16, 2024
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BusinessDay

MTN converts to public limited liability company

MTN-Nigeria-office

MTN Nigeria has completed its conversion from a private company to a public company (Plc), a legal requirement and key milestone in the preparatory process for the telco’s planned listing by introduction on the Nigerian Stock Exchange (NSE)

A public limited company is the legal designation of a limited liability company (LLC) that is offering shares to the general public and has limited liability.

MTN’s intended listing on the NSE will create a new telecoms asset class for investors and provide a wider group of Nigerians with a chance to participate in the MTN investment opportunity.

Speaking on the conversion, Ferdi Moolman, CEO, MTN Nigeria said: “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 reaffirmation 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 Security Exchange Commission (SEC) and NSE to take forward the listing process.”

MTN had in March this year, released its 2018 full year financial results where it recorded growth above inflation in full service revenue (17.2 percent) and the addition of nearly 6 million new subscribers to the network. The company announced Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of N453.1 billion and expanded EBITDA margins to 43.6 percent (excluding the CBN resolution amount). The company added 4.5 million active data customers during the year, delivering data revenue growth of 39.3 percent and expanding to 18.7 million the number of people that it connects to the possibilities that the internet provides.

Nigeria is one of the largest markets within MTN’s portfolio and central to its growth strategy. The upcoming listing is a key milestone for the MTN group and is part of its commitment to localisation in the markets in which it operates.

 

Jumoke Akiyode-Lawanson