Nigeria – New Core Investor Approaches MTI for 51% Stake
Efforts by the new board and management of Mass Telecommunication Innovation (MTI) Plc to revive the fortunes of the company is gradually yielding results as more investors have indicated strong interests to buy controlling stakes in the company.
A source close to the company told THISDAY yesterday that a new core investor has approached MTI with the aim of buying a controlling stake.
When contacted, Group Managing Director of MTI Plc, Mr. NosikeAgokei, said the effort of the new management at getting the company back on track has made it attractive to more investors. He said the restructuring of the company will put it in a strong position and enhance stakeholders’ value.
According to him, “We have worked very hard to get the company working again. The restructuring is about consolidating what we have been able to achieve so far. We have several subsidiaries that are no longer profitable. We want to close these subsidiaries and face our core business. This will help us reduce cost and tax charges.
“There are other assets that we are looking at disposing off to raise capital to invest in the business we are also expecting some money from the liquidation of NITEL. The restructuring will also affect some of our staff. All these are geared towards ensuring that MTI Plc become number one again.”
Tingo Mobile, a mobile phone manufacturer, recently indicated that it had agreed to buy a majority stake in MTI for about N4 billion to develop rural broadband in the country. Chief Executive Officer, Tingo Mobile, Dozy Mmobuozi, said Tingowould acquire 51 per cent of MTI.
According to him, MTI will be rebranded and will remain listed on theNigerian Stock Exchange (NSE).
“We’re using the acquisition to reach out to the mass market,”Mmobuozi said. Lagos-based MTI’s “assets from base stations to license and goodwill and other things, will help penetrate rural Nigeria.”
After repeated losses and inability to meet reporting and post-listing requirements, MTI had opted to restructure its operations and corporate governance structures.
A latest report by the NSE on the status indicated that Mass MTI Plc and four other quoted companies have filed for restructuring, a general reference to major corporate changes.
The firms struggled with declines in sales and profits and had been variously tagged by the NSE for many corporate governance issues.
The report indicated that the NSE has already approved the requests for restructuring by the companies. Source: This Day Live