Existing MTN shareholders are under no compulsion to tender their shares for trading.
There has been misconception and confusion in some quarters about MTN’s listing of shares on the Nigerian Stock Exchange (NSE) a week ago.
The telecoms giant announced that it was listing its shares by way of introduction and many willing investors have misunderstood this to be that shares would be made available for sale. That is not so.
We are here to break the situation down in a more relatable manner for those who have been wondering why they can’t simply buy shares in the thriving company since the listing last week. Follow us.
For this purpose, we will refer to MTN as Johnson, an illustrious farmer, while the NSE and the existing investors are Kosofe Kingdom and the Owonikokos respectively. The country, Nigeria, is represented as Sokoto.
Johnson, like we said, is an illustrious farmer who has hectares of farmland where he plants various cash crops. No farm rivals his as he continues to impressively grow his revenue.
Johnson is the cynosure of all eyes. So, everybody wants to have a share in his highly valuable farmland.
The Owonikokos, who also share in Johnson’s dream for an even bigger, profitable farmland, then decide to buy a part of the farm from him. So that when he sells his farm produce, they will also receive a share of the profit.
But in Sokoto, where Johnson’s massive farmland is, he is required to occasionally join other businessmen in displaying his vast farmland for others to see in the Kosofe Kingdom.
Through this process, other sharp guys occasionally join the Owonikokos to buy part of his farmland to reap the benefits.
This has been going on for many years. Until this time, when he has decided to only display his farmland in the Kosofe Kingdom without making any part available for sale.
When he announced that he was going to be displaying the farmland, many people in Sokoto who are willing to become part of the Owonikoko family became super excited.
Johnson then explains that, according to the rules in Kosofe Kingdom, his display of his farmland this time is only to show the part that the Owonikokos have bought. Not to sell from what he has.
Any of the Owonikokos can, however, decide to sell his part of Johnson’s farm to willing buyers, at a price that is determined within the Kosofe Kingdom, though he is under no compulsion or obligation to do so at the moment.
Shot callers in the Kosofe Kingdom have said Johnson has not breached any rules by the display.
They have also advised other people willing to join the Owonikokos to be patient and see if any of them would be willing to sell.
Or they can simply wait till Johnson makes new portions of the farmland available.
That’s it! That is where we are at now. We are keenly monitoring developments concerning whether any of the Owonikokos would be willing to sell or not.
KOSOFE KINGDOM ………………………NIGERIAN STOCK EXCHANGE
THE OWONIKOKOS ………………………EXISTING SHAREHOLDERS
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