Investors sold down their shares in MTN Nigeria on the floor of the Nigerian Stock Exchange (NSE) on Thurrsday, forcing down the price of the stock by 2.4 percent to its lowest level since May 21.
MTN Nigeria shares fell to 128.75 naira per unit on Thursday in what analysts described as the impact created by litigations over a tax dispute with Nigeria authority.
A Federal High Court adjourned the $2 billion tax dispute between the telecoms firm and the government to October 22 on Wednesday, creating uncertainty over the possibility of quick resolution of the case.
Analysts said the court adjournment created uncertainty for investors as the tax dispute would continue to linger.
However, the shares of MTN was still 43.05 percent higher than the 90 naira a unit it was listed on May 16.
Last September.. the office of Nigeria's general claimed MTN Nigeria was in arrears of $2 billion in tax payment, which further compound the woes of the telecoms firm which had previously been fined by industry regulator for selling non-registered SIM.
On its part, MTN said the tax demand is without merit and that the attorney general exceeded his powers in making the request.
MTN Nigeria listed with a valuation of 2 trillion naira ($6.5 billion), making it the second-biggest company on the Nigerian Stock Exchange. It climbed to as high as 159.30 naira in the days after listing.
The listing came after the South African group resolved its dispute with industry regulator over unregistered SIM cards.
In December, the telecoms firm made a $53 million payment to resolve a money transfer allegation out of Nigeria, levelled by the central bank.
Nigeria is MTN’s biggest market, with 58 million users in 2018 and accounting for a third of the group’s core profit. But the Nigerian business has faced several challenges.
MTN has said it would sell more shares to the public and increase local ownership in MTN Nigeria once the tax row was resolved.
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