The Economic and Financial Crimes Commission (EFCC), on Friday, visited the head office of telecommunications firm, MTN in Lagos.
The visit, according to sources within the firm was not unconnected to the recently share listing of MTN on the Nigerian Stock Exchange (NSE).
The South African telecommunications firm had listed by introduction, 20.4 billion ordinary shares at N90 on the NSE.
Though, no official confirmation from MTN as at press time, about the EFCC visit, but an insider disclosed that the EFCC around 4pm, met with the management and went away with some documents after some deliberations.
‘‘The EFCC came this afternoon, met with the management and I think they went with some documents.’’
Recall that since the listing there have been reports of scarcity of the shares and alleged manipulation.
Stock brokers decried the inability of retail investors not having access to the shares of MTN Nigeria on the floor of the NSE.
Boniface Okezie, a representative of Minority shareholders was reported to have said that: “shareholders are not happy because we could not buy their shares; it was not available and we don’t share in all the excitement going around.”
The capital market regulators have also been accused of conniving with MTN Nigeria Plc to allegedly manipulate the performance of the telecom firm’s share price at the Exchange.
Specifically, they argued that by allowing MTN a free float of only 5.542 million shares admitted for trading at N90/share worth N498 million when it listed by way of introduction on The NSE, rather than unbundling all the units of shares in its holding, the managers may have unwittingly created a scarcity situation in the market.
Under the terms, “The free float requirement for companies on the Alternative Securities Market, ASEM, Board is 15 per cent of market capitalisation while 20 percent is prescribed for companies listed on the Main Board and also Premium Board is 20 per cent of market capitalisation or above N40 billion on the date the Exchange receives the Issuer’s application”
The Chairman of Association of Licensed Telecomunication Companies of Nigeria (ALTON), Gbenga Adebayo confirmed EFCC visit MTN but on a positive note.
