CBN's $8.1 billion demand will affect MTN's proposed public offer
Rob Shuter, the Group CEO of MTN confirmed that the apex bank's sanction will complicate the IPO processes.
The CBN had ordered MTN and four other banks to refund $8.1 billion illegal capital repatriation. Allegations which MTN Group Ltd swiftly denied.
Sources told Reuters that the sanction will affect market conditions in Nigeria. The sources also doubted the likelihood of MTN listing on the Nigerian market this year.
Rob Shuter, the Group CEO of MTN also confirmed that the apex bank's sanction will complicate the IPO processes.
He, however, said MTN is continuing with the listing process.
All hands on deck to rescue to MTN
Last Friday, Herbert Wigwe, Access Bank CEO, said, the bankers' committee will intervene in the current forex issues between Nigeria and MTN.
He said he expected a resolution on the matter to avoid a systemic banking crisis given that the repayment of $8.1 billion, which is about half of MTN’s market capitalisation, could threaten its Nigerian bankers.
Listing on the Nigerian Stock Exchange
In October 2015, MTN Nigeria incurred a record $5.2 billion fine over its failure to deactivate 5 million unregistered SIM cards. After a series of diplomatic negotiations, the government reduced the fine to $1 billion (N330 billion), payable over the three years on the terms that MTN enlists on the Nigerian Stock Exchange (NSE).
MTN has fulfilled more than 50% of the fine.
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