Citi Business News is learning that MTN is yet to conclude processes to allow it sell thirty-five percent of its stake in Ghana. This comes despite the Securities and Exchange Commission (SEC)’s acceptance of the telecom company’s decision to float shares to the public and allow local partnership in the company.
The move also forms part of requirements following MTN’s acquisition of one of the two 4G Licenses in December last year.
“What we know now is that MTN is not listing on the Ghana Stock Exchange (GSE) but it is floating shares to the public which means the shares will be traded on the ‘over the counter’ market and not through the Ghana Stock Exchange,” Director General of the Securities and Exchange Commission, Dr. Adu Anane Antwi observed.
Dr. Antwi however explains to Citi Business News his outfit would have preferred a complete listing by MTN on the domestic bourse.
“It is welcoming news as Ghanaians will own the shares but it is more beneficial to the entire market when it is listed on the Ghana Stock Exchange. It will deepen the Ghana Stock Exchange as it will increase the size and put the GSE at a level that will be compared to other bigger exchanges across Africa,” he explained.
The development also comes at a time that SEC is appealing for multinational companies to list on the stock market and improve Ghana’s capital market. Citi Business News understands some multinationals have already initiated processes to list on the GSE.
Though it’s been almost a year after MTN secured the license for 4G spectrum from the industry regulator, the National Communications Authority (NCA), Dr. Adu Anane Antwi believes the NCA would have intervened if the company had defaulted.
“I think if they had gone outside the timeframe within which they had to complete, the regulator (NCA) would have complained or dealt with that matter.”
It is however not clear how much MTN will be raising from the public as the Head of Issuers at SEC, Jacob Aidoo explains to Citi Business News the Commission is yet to receive full complements on the total value of MTN to determine the value of the 35 percent stake it intends to float.