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According to NewTelegraph, investors of MTN Nigeria Plc. have lost
about N40 billion in two days over xenophobic attacks in South Africa.
Investigation by New Telegraph showed that MTN shares, which opened at
N140 per share and N2.849 trillion in market capitalisation at the
beginning of trading on Wednesday lost about N30 billion or N1.07 per
share to close at N138.50 per share and N2.819 trillion in market
capitlisation at the close of the market the previous day.
The telecom firm also shed N10 billion or 45 kobo per share at the close
of trading yesterday to close at N138.05 per share from N2.819 trillion
in capitalization to N2.809 trillion, bringing a cumulative loss to N40
billion.
There have been attacks and demonstrations at MTN offices to protest
xenophobic attacks on Nigerians and other foreigners in South Africa.
MTN Nigeria had, on Wednesday, confirmed attacks on its offices, saying
that all MTN stores and service centres would be closed until further
notice.
The company stated this in a letter sent to the Nigerian Stock Exchange (NSE) by its Company Secretary, Uto Ukpanah.
Ukpanah, in the letter, confirmed that over the last day, “our
facilities, customers and some of our stakeholders have been the subject
of attacks in retaliation for the ongoing xenophobia situation in South
Africa.”
He said that the company had confirmed reports of attacks in Lagos, Ibadan and Uyo.
“While we remain committed to providing uninterrupted services, the
safety and security of our customers, members of staff and partners is
our primary concern.
“All MTN stores and service centres will, therefore, be closed as a precaution, until further notice,” Ukpanah stated.
Reacting to the development, the Chairman, Progressive Shareholders
Association of Nigeria, Mr. Boniface Okezie, said the market reacted
negatively to the shares of the telecom company after the shut down of
their shops nationwide following xenophobic attacks.
“Since they shut down the shops, the market has to react. MTN should
talk to their home country to stop these attacks on foreigners. If this
provocation continues, the company will not have enabling environment to
operate. If it continues, we will nationalize South African companies
in Nigeria.
“We need to take the bull by the horn, but unfortunately, we have a weak
government; Obasanjo’s regime wouldn’t have tolerated this rubbish. And
because our economy is still crawling, our people will continue to run
away to other countries. The Federal Government should reposition the
economy to encourage Nigerians to stay in this country,” he said.
Also, Shehu Mikail, National President, Constance Shareholders
Association of Nigeria, said that MTN, the continent’s largest mobile
phone operator, fell after the company closed its offices in Nigeria
following attacks on its premises in three cities.
“It was due to panic that made investors to embark on sell pressure, the
situation is not good for investment in Nigeria. My advice is that both
the government of South Africa and that of Nigeria should take
proactive action to stop these attacks to enable an inflow of investment
in both countries,” he said.
NSE recently admitted 20.354 billion units of shares of MTN Nigeria Plc.
at N90.00 per share on the premium board of the daily official list of
the Exchange.
Addressing investment community on the floor of the Exchange, the Chief
Executive Officer, Fredi Moolman, listed the rationale for listing to
include creating access for the public to participate in the ownership
of MTN Nigeria, contributing to the growth of the Nigerian Stock
Exchange and to further establish brand leadership and legacy by
becoming the first mobile network operator to list on the NSE.
He noted that MTN Nigeria is the largest mobile operator in Nigeria with 60.3 million subscribers and 20.4 million active data.
He added that with 50 per cent market share by revenue, MTN has the largest fiber network coverage of 25,800km