Invest Data Consulting Ltd

Telecommunications giant- MTN plans to list its Nigerian unit worth $5.23bn by July in a debut Initial Public Offering (IPO) on the Nigerian Stock Exchange (NSE), just as it will raise fresh funds to reduce debt, according to pre-IPO presentation seen by Reuters. The listing of up to 20bn shares of MTN through a split of an existing unit into 50 units, is believed to be part of an agreement reached following the sanctions by the industry regulator- the Nigerian Communications Commission (NCC). MTN Nigeria, which is 70% owned by South African parent company, aims to raise at least $400 million from the IPO to pay preference shareholders and is preparing to file application to the Securities and Exchange Commission (SEC) to launch the offer after getting approvals from existing investors last week, sources with knowledge of the matter said. Ahead of this, a roadshow is planned for between May and June this year, while listing on Nigeria’s bourse is slated for between June and...

For the past several months, Nigeria’s fourth largest GSM provider- Emerging Market Telecommunictions Services Limited (EMTS), otherwise known as Etisalat, has been in the news. This time, it is for the wrong reason. The company has been in and out of meeting rooms with its bankers to resolve issues around a $1.3bn or N541.8bn debt to 13 Nigerian banks, which arose from a 2013 facility to refinance existing loans ($650m), while the balance was for provision of working capital and network expansion. Following the failure to resolve the matter amicably after several meetings that involved the Central Bank of Nigeria (CBN) and the National Communications Commission, regulators of the nation’s banking and telecoms industries respectively, in a bid to restructure, the loan is as good as bad and doubtful. The banks must therefore provide for the loan, with unpleasant implications for their books at the end of 2017 financials, following which they are required to make provision...