The management of MTN Nigeria, on Tuesday, reacted to allegations of price manipulation, saying holders of its shares are at liberty to trade them at prices they consider appropriate.
In a statement to the NSE, by Uto Ukpanah, the company secretary, MTN Nigeria noted that at the time of listing its shares by way of introduction, MTN Group held the controlling stake of 78.8%, with Nigerian investors having 19.4% “and others,” 1.8%.
Management of the Nigerian Stock Exchange (NSE) had earlier, on Monday night, reacted to the allegation against the company, insisting that MTN Nigeria broke no existing post-listing rules (READ).
Insinuating that the N90 per share listing price may have been an undervaluation, the company recalled that “the outstanding matter relating to the Attorney General of the Federation created a high degree of uncertainty over the valuation of MTNN, which makes it difficult to determine a fair price for MTNN at present.
“The associated risks and potential returns could not be fairly assessed and priced. As a result, and in the best interest of all shareholders, both the current and future, the commencement listing price was set at N90 per ordinary share, which was determined with reference to the private shares sale transactions by MTNN shareholders over a 180 trading day period.”
The statement also noted that its preference shares, were always envisaged as a necessary part of simplifying its capital structure ahead of, or soonest after listing, have not been redeemed.
These, it continued, will be taken from the distributable reserves of the company and paid for with cash generated from its operations, after obtaining necessary regulatory approvals.
MTN Nigeria further assured that its N329bn medium-term facility signed in 2013 will be fully paid by November, following which the N200bn facility it signed last Friday, May 17, forms part of its new debt programme in line with the medium-term business plan.
When drawn down, it continued, the new facility will be used to support medium-term capital expenditure projects, funds working capital needs, meet operational expenditure requirements and position it to take advantage of future expansion opportunities.
According to a table seen by this reporter, MTN International (Mauritius) Limited holders 15,485,544,050 units, representing 76.08% of MTN Nigeria as the controlling entity, worth N1.686tr as at Friday, May 17, 2019; while non-controlling entities include Stanbic IBTC Asset Management Limited, 1,962,349,050 shares or 9.64%, valued at N213.699bn. Other minority shareholders include: Mobile Telephone Network N.I.C.B.V., 559.72m units or 2.75%, valued at N60.953bn; Government Employees Pension Fund (represented by South Africa’s Public Investment Corporation SOC Limited), holds 355.281m shares or 1.75% valued at N38.69bn; Victor Odili, 806.886m units or 3.96%, worth N87.869bn through Hermitage Overseas Ltd; while Pascal Dozie, chairman of MTN Nigeria holds 340.409m or 1.67% valued at N37.07bn, through Celtelcom Investment and NISPV Ltd. Sanni Mohammed Bello, another investor, holds 265.092m units, or 1.3% of MTN Nigeria valued at N28.868bn, in the name of One Africa Investment Ltd; Babatunde Folawiyo follows with 218.815m units or 1.08% valued at N23.828bn, through Universal Communications Limited and NISPV Ltd; just as Gbenga Oyebode has 181.776m units or 0.89% in the name of N-cell Ltd and NISPV Ltd, worth N19.795bn; while Mallam Ahmed Dasuki and Kari Olutokun Toriola own 177.717m or 0.87% worth N19.353bn through NISPV and SASPV Ltd, and 920,000 units or 0.005% worth N100.188m in personal capacity respectively.
Note, however, that given the gains of Monday and Tuesday, the holding configuration and worth of these investors would have changed.