Mobile phone operator MTN Nigeria plans to open its capital to the public next year. According to an internal source at the company, close to the matter, the opening will be on the Nigeria Stock Exchange (NSE), through a takeover bid. The reasons that justify this action by the leading telecoms operator would be the financial pressures he faces in the country.
Spending has increased, incomes are struggling to stay in the green, all this in an economic context made delicate by the fluctuation of the exchange rate of the naira against the dollar. The Nigerian energy crisis has resulted in significant spending by MTN to keep the network operational. The company must operate its numerous telecom towers on a daily basis.
The fall in value of the naira against the dollar has also had an impact on the financial power of the company. This has also been acutely felt on the financial results of the MTN group for the first half of 2015, Nigeria being one of the strong markets of the MTN group in Africa.
However, MTN Nigeria’s decision to open capital on the Nigeria Stock Exchange would not be final. The operator could abandon it if the country’s economic conditions changed.
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