MTN Nigeria sells at N125 per share in off-market deals

0
479

Investors appeared to be willing to pay more than the 10 per cent daily premium on the share price of MTN Nigeria Communications Plc. While the share price of the telecommunications company rose again by 10 per cent at the weekend to N108.90 at the open market at Nigerian Stock Exchange (NSE), investors went into off-market negotiations to buy the stock at N125 per share.

A transaction note at the weekend indicated that nine deals were struck for 16.26 million ordinary shares of 2.0 kobo each of MTN Nigeria at N125 per share at the negotiated dealing window of the NSE.

The negotiated deals were struck at 14.78 per cent premium to the closing price of N108.90. Under the rules at the open market at the NSE, the maximum daily allowable price change is set at 10 per cent.

As off-market, negotiated cross deals, it means that the deals were not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deals were previously negotiated and only sealed through the transfer portal of the Exchange.

The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

MTN Nigeria Communications rose by the maximum daily allowable price gain of 10 per cent on Friday, chalking up a whooping N201.47 billion capital gains in second day of trading at the stock market. MTN Nigeria on Thursday listed by way of introduction 20.35 billion ordinary shares at N90 per share.

MTN Nigeria’s share price, which rose by 10 per cent or N9 on Thursday, also rose by the same maximum percentage on Friday, adding N9.90 to close now at N108.9 per share.

With the ongoing rally, MTN Nigeria has gained N384.62 billion in two days, pushing its market value from initial listing value of N1.83 trillion to N2.22 trillion. The off-market deal valued MTN Nigeria at N2.54 trillion, some N400 billion below Dangote Cement, the most capitalised quoted company. Many analysts believed that MTN Nigeria will overtake Dangote Cement as the most capitalised company at the Nigerian stock market this week.

Speaking at the listing of the company, Chairman, MTN Nigeria Communications Plc, Pascal Dozie said the listing was a milestone in the evolution of the telecommunications company, noting that the listing will help to create a new telecoms and technology asset class for investors and provide opportunity for a wider group of Nigerians to participate in the MTN Nigeria success.

“Today is a major milestone in the evolution of MTN in Nigeria and it is fitting that it takes place 18 years to the day since I made the first call on the MTN network on May 16, 2001. Since our initial investment in 2001, we have worked in partnership with Nigerians to deliver the largest network in Nigeria, with over 60 million people now able to access mobile communications services,” Dozie said.

He pointed out that MTN Nigeria employs more than 1,600 people while its operations create employment for more than 500,000 Nigerians.

According to him, the telco has empowered millions of people and businesses in rural and urban areas, driving innovation, expansion of market access and local economic inclusion.

“I am delighted that we can expand this impact further today, by enabling investors to trade our shares on the NSE,” Dozie, who beat the ceremonial gong to close the market, said.

Chief Executive Officer, MTN Nigeria Communications Plc, Ferdi Moolman assured that the company has established a sustainable platform for growth, from which it would be able to meet the growing and dynamic needs of all stakeholders.

He said MTN Nigeria had been built through a sustained focus on customer-centric delivery, striving to ensure that every subscriber gets as much value for their money as possible.

“We are grateful to customers for their loyalty, and to our people, our partners and our regulators for the opportunity to continue to contribute to Nigeria’s growth story. We are only beginning to tap into the opportunities that connectivity enables and are fully focused on investing to connect every Nigerian, and to make social innovations like mobile electricity and high impact mobile solutions in education, healthcare and agriculture available in communities everywhere,” Moolman said.

SHARE
Previous articleNigeria’s POS transactions hits 117,130.91 in first quarter 2019 — NIBSS
Next articleAfDB approves $15m equity fund for Anglophone West African SMEs
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.