Telcom Operators Vow to Resist Mandatory Stock Listing

THE Association of Licensed Telecommunications Operators of Nigeria (ALTON) has vowed to challenge in court the plan to compel its members to list on the Nigerian Stock Exchange.

Speaking to journalists recently in Lagos, Head of ALTON Gbenga Adebayo said that the decision to list on the Exchange should be left to the companies.

He explained that if the association is convinced that such a move will destabilize the industry and reverse the growth recorded in the past decade, it will not hesitate to press charges in court.

Earlier, members of Parliament and a section of the public have been calling for the compulsory listing of telecommunication companies.

The ALTON president said such a plan, if allowed to go through, would be against the principle of free trade.

It could be recalled that some Capital Market operators and stakeholders in the nation’s Capital Market have renewed calls for the listing of multinational firms operating in the Nigerian economy on the Nigerian Stock Exchange ().

Speaking with capital market correspondents on the development in Lagos recently, the President, Chartered Institute of Stockbrokers (CIS), Mr. Mike Itegboje, said the National Assembly should use the doctrine of necessity as the major reason for such legislation, adding that none of the major telecoms and oil firms is listed on the Exchange and that there have been calls for them to list their shares.

He said, “It is in the interest of all stakeholders for this to be done and that the local investors will ensure that their investments in the companies are protected since they will share in the dividends and other benefits.

The foreign stakeholders and shareholders will be at peace. The market capitalisation will increase in real terms.

It will attract more international investors for equity and debt instruments to be issued by these companies. Now is the time.

A Capital market analyst, Mr. Abiodun Hakeem said, getting the telecoms and oil and gas multinationals to list on the Exchange would boost liquidity that would transform the fortunes of the capital market and in turn restore the much-needed investor confidence.

Hakeem gave instances of some African countries that had legislation in place mandating multinationals to list on the host countries’ exchanges.

He said in 2002, Kenya enacted the Foreign Investor Regulation, which compelled multinationals operating in the country to list in the capital market.

He added that similarly, Tanzania parliament in February 2010 passed a Communication Bill, which made it mandatory for mobile telecommunications companies to be listed on the Dar es Salaam Stock Exchange.

“In Kenya for instance, the legislation provided for a minimum of 25 per cent reserve of the issued share capital for local investors while the balance of 75 per cent was left for other categories of investors.

The legislation made it possible for Kenyan citizens to invest in companies like Nation Media, a regional media player; TPS East Africa, a tourism operator and Safaricom, a mobile telecommunication company amongst others,” he said.