The Nation Newspaper

Tag: MTI

  • MTI lists shares on NASD OTC Securities Exchange

    Mass Telecom Innovation (MTI) Plc has listed its shares on the NASD OTC Securities Exchange, opening up a new opportunity for secondary trading on the shares of the telecommunication company after it was delisted by the Nigerian Stock Exchange (NSE).

    A regulatory document at the weekend indicated that MTI’s shares have been admitted to trade on the over-the-counter market. Inaugurated in July 2013, NASD OTC Securities Exchange is registered by the Securities & Exchange Commission (SEC) as a Self-Regulatory Organisation (SRO). The NASD OTC provides the platform for trading of a broad range of instruments over-the-counter, including equities, bonds and securities not listed on the Nigerian Stock Exchange (NSE).

    Many leading companies are listed on the NASD OTC including world leaders like Dufil Prima Foods Plc, the manufacturer of Indomie Noodles; Friesland Campina Wamco Nigeria Plc, manufacturer of Peak Milk brand and Fan Milk Plc, popular manufacturer of Fan Yoghurts are listed.

    Other companies included NIPCO Plc; Air Liquide Nigeria Plc; Industrial & General Insurance Plc; Central Securities Clearing System Plc; the clearing and depository arm of the Nigerian Stock Exchange; Nigeria Mortgage Refinance Company; Jaiz Bank Plc, the Islamic bank; Acorn Petroleum Plc; Arm Life Plc; Afriland Properties Plc; BGL Plc; Consolidated Breweries Plc and Food Concepts Plc.

    Also included are Geo-Fluids Plc; Golden Capital Plc; Niger Delta Exploration & Production Plc; Partnership Investment Company Plc; Resourcery Plc; Riggs Ventures West Africa Plc; Swap Technologies & Telecomms Plc; Vital Products Plc; Fumman Agric Products Industries Plc; Free Range Farm Plc; FAMAD Plc; AG Mortgage Bank and Trustbond Mortgage Bank Plc, among others. There are also more than 137 registered traders of participating institutions at the market.

    Authorities at the NSE had in May last year, delisted MTI and three other companies that had repeatedly failed to meet corporate governance standards set by the Exchange. The other delisted companies included UTC Nigeria Plc, Beco Petroleum Plc and MTECH Communications Plc. The delisting took effect on May 2, 2017, although the national council of the Exchange had approved the delisting in February 2017.

    The NSE had stated that the delisting was pursuant to Clause 15 of the General Undertaking, Appendix III of the Rule Book of The Exchange, 2015-Issuers’ Rules,  which deals with the post-listing requirements and sanctions.

    The companies were delisted under the compulsory delisting mechanism of the Exchange after their failure to meet post-listing requirements on timely disclosures and corporate governance.

    The companies were delisted for recurring and irredeemable inability to comply with the listing requirements of the Exchange, especially in the areas of timely and accurate rendition of operational and financial accounts and other corporate governance issues.

    The delisting process of some of the companies had started almost two years ago and the authorities at the Exchange had continuously engaged the companies with the hopes that they would regularise their operations, but they had failed to make any convincing move to comply with listing requirements.

  • New core investor bids for majority stake in MTI

    Directors of Mass Telecommunication Innovation (MTI) Plc and a new core investor have opened exploratory talks on possible acquisition of the majority equity stake in the telecommunication infrastructure company.

    On the heels of exclusive report yesterday by The Nation on the ongoing restructuring at MTI, a reliable market source in the know of the talks said the new core investor and directors of MTI have met to initiate discussions on the potential acquisition.

    According to the source, the new core investor has indicated interest in acquiring majority equity stake of some 51 per cent in MTI.

    The new core investor was said to have been impressed by the ongoing restructuring at the telecommunication company.

    This initial expression of interest by a new core investor came on the heels of unsuccessful attempt by Tingo Mobile, a Nigerian mobile phone manufacturer, to launch acquisition bid for similar majority stake of 51 per cent in MTI.

    Chief executive officer, Tingo Mobile, Dozy Mmobuozi, had said Tingo will acquire 51 per cent of MTI for about N4 billion to develop rural broadband in Nigeria.

    According to him, MTI will be rebranded and remain listed on the 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.”

    However, a source close to the company said the Tingo’s bid was inconclusive and MTI is looking up to the new core investor for a potential deal.

    The Nation had reported yesterday that MTI and four other companies had filed in for restructuring exercise at the Nigerian Stock Exchange (NSE), a process that might see significant changes in the operating, governance and shareholding structures.

  • Firm buys MTI stake for N4b

    A relatively unknown indigenous mobile-phone manufacturer Tingo Mobile yesterday,  agreed to buy majority stake in Mass Telecom Innovation Nigeria Plc (MTI) for about N4billion ($25 million) to develop rural broadband as the Federal Government moves to achieve its National Broadband Plan.

    Tingo will acquire 51 per cent of cable-network operator MTI, Chief Executive Officer Dozy Mmobuozi was quoted to have said in an interview in Lagos.

    According to Bloomberg, the company will be rebranded and remain listed on the Nigerian Stock Exchange, he said.

    “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.”

    Telecommunications companies including Chinese equipment vendor, Huawei Technologies and global system for mobile (GSM) communication service provider, MTN. are expanding in Nigeria to tap a growing market for mobile and data usage. Africa’s biggest economy had 169 million mobile-phone subscriptions as of March for a population of about 170 million, the Nigerian Communications Commission (NCC).

    With many users owning more than one phone, subscriber numbers are expected to grow to more than 200 million in 2017, according to London-based research company Informa Telecoms & Media.

    Tingo said it will start selling three smartphones in the local market, the first time its devices will be made available to the public rather than to government or corporate customers. The Tingo T5, T500 and T561 models cost N10,000 and N18,000 and are made locally, Mmobuozi said. The Abuja-based company also has operations in Kenya and Malaysia.

  • SEC to probe N5.2b shares fraud at MTI

    SEC to probe N5.2b shares fraud at MTI

    •Investors allege directors fritter N275m as severance pay

    Securities and Exchange Commission (SEC) is set to investigate allegations of massive financial and securities fraud at Mass Telecommunication Innovation (MTI) following the petition by investors in the company, alleging that former directors of the telecommunication infrastructure company engaged in fraudulent practices and mismanaged the finances of the company.

    The petition dated January 6 was acknowledged by the office of the director-general of SEC on January 22, 2014. A source at the apex capital market regulator indicated that the Commission will investigate the claims by the petitioners in line with its avowed commitment to market integrity.

    The source indicated that SEC will give fair hearing to all parties and will also make its final findings available to the public as it has done in recent cases.

    The petition, submitted on behalf of the aggrieved shareholders by the law firm of Punuka Attorneys and Solicitors was titled “Petition Against Five Former Directors Of Mass Telecommunication Innovation Plc (MTI Plc) Unlawful Distribution and Utilisation of the Company’s Funds Raised from the Capital Market”.

    According to the petitioners, the five former directors of the company misappropriated funds raised through the private placement and made erroneous and misleading statements to hoodwink the public.

    The former directors were Hon. Chibudom Nwuche, former chairman; Frank Kartitie, former executive vice chairman; Glen Daley, former managing director; Amunel Araya, former executive director for Finance and Administration and Gaetino Marcon, former executive director for engineering and technical services.

    The petition stated that MTI, a company incorporated in December 2001, had between March and April 2008, after obtaining the consent of the SEC, undertaken a private placement to raise funds for the purpose of implementing its business development and expansion programme, improvement in information technology infrastructure, staff development and working capital as stated in the offer document.

    According to the petitioners, N5.2 billion was raised through private placement and the firm was converted to a public limited liability company and its shares were listed on the floor of the Nigerian Stock Exchange (NSE) after a successful private placement.

    However, the aggrieved investors alleged that as soon as the funds were released to the board and management, they immediately paid themselves what they tagged “severance pay.”

    They alleged that each of the five directors took N55 million amounting to a total of N275 million but all the directors, including the non-executive directors, still remained on the board after collecting the severance pay.

    They alleged that just one year after the proceeds of the private placement were received, the company was unable to pay salaries and pay for the execution of existing contracts.

    “All the directors continued to collect salaries and allowances. Non-executive directors were not entitled to salaries. Payment of the severance pay was illegal as it ran contrary to the provisions of the law and the procedure stipulated,” the petitioners stated.

    They also alleged that the directors might have fraudulently misdirected the investing public through overstatements and understatements of the financial conditions of the company during the issue period.

    According to the petitioners, the financial details in the prospectus for the private placement were manipulated to deceive the investing public as the company has had to write off over N1 billion of overstated debts.

    “Subcontractors were owed in spite of the fact that huge sums were paid to the company by major telecom companies as advance payment. Accumulated taxes such as VAT, companies’ income tax, and withholding tax were not paid,” they alleged.

    The petitioners noted that the debts that were purportedly indicated as related to MTN Communications Limited, Etisalat Limited Airtel Nigeria Limited and Huawei Limited were hoaxes while the share premium account might also have been manipulated for more than N100 million.

    MTI has struggled since quoted on the NSE. NSE has designated MTI as a company “below listing standard (BLS) for non rendition of financial statements.

    MTI Plc prides itself as a diversified project development group offering high-performance infrastructure that assists service providers, enterprises and private sector organizations to create value and accelerate business success within the new changing African and global marketplace.

    According to its corporate information, the foundation of MTI Plc was laid with its incorporation in December 2001. It commenced operations in the year 2002 as an Information Communication and Technology (ICT) company to provide a broad spectrum of world-class telecommunication products and services. It became a publicly quoted company in March 2008 with four distinct subsidiaries.

    “Headquartered in Lagos, MTI has offices in Ghana and Nigeria, and employs approximately 192 employees. The prime objective of this uniquely positioned company is to implement infrastructure projects on a commercial format. MTI’s business is to build quality, independently owned and operated infrastructure to service Sub-Saharan African needs in telecommunication, energy, transport and sanitation on an open-access, open-book and common-user basis,” the company stated on its profile.