MTN Nigeria Attracts Investors Attention after Deal Renegotiation
Telecommunication services provider, MTN Nigeria Plc, attracted equities investors’ attention on the Nigerian Exchange after the company announced the successful renegotiation of its tower lease contracts – correcting a mismatch between its revenue sources and foreign currency obligations.
The share price of MTN Nigeria with Ticker: MTNN rose by 10%, the maximum allowable uptick per day, due to investors’ rapid response to the news with the expectation that the telecom company’s foreign exchange losses would decline in the coming quarters.
Market value of the company rose to N4.157 trillion on Thursday at N198 per share, up from N180 in the previous day’s close. According to data from the local bourse, MTN Nigeria Plc has seen significant valuation slumps following weak earnings performance.
The company has been posting net loss due to negative impacts of exchange rate fluctuation on its earnings performance. This caused investors to sell down their interest in the market, reducing its market value by almost half from the peak period performance,
At the end of first of financial year 2024, MTN Nigeria Plc unaudited financial statement showed that the telecom giant posted about N888 billion FX losses. MTN Nigeria had reached N319.80 early in the year, marking its 52-week high before the stock retreated.
MTN Nigeria Plc said the telecom company has renegotiated tower lease agreement with its contractors, IHS and ATC Nigeria Limited, according to a regulatory filing.
The telecom renegotiated the binding commercial terms of the existing infrastructure sharing and master lease agreements with IHS. Prior to the renegotiation, the site leases expired variously between December 2024 and December 2029, with the majority expiring in 2029.#MTN Nigeria Attracts Investors Attention after Deal Renegotiation Veritas VC Advocates ‘Meta-Theory’ in African Development
