Lawyer Asks Court to Stop MTN from Listing on NSE

Dr. Charles Mekwunye, Lagos lawyer, has urged the Court of Appeal to restrain MTN from listing its shares on the Nigerian Stock Exchange (NSE), pending the determination of a suit involving him, the telecom giant and four other firms.

In the appeal marked CA/L/1349/16, Mekwunye is praying for an interlocutory injunction restraining MTN from listing its shares on THE NSE or any globally recognised stock exchange.

Other prayers include an injunction restraining MTN from putting up signs, advert or notice which may suggest the listing of its shares.

An order of interlocutory injunction restraining MTN from inviting the public to buy or purchase its shares in any public offer pending the determination of the appeal.

The appellant is also asking the court to reverse the alleged interference of IHS Holding and INT Tower in the agreement among him, MTN, Lotus Capital and Stanbic IBTC Management Limited.

Mekwunye sued MTN at the Federal High Court, Lagos for alleged breach of an agreement by firms representing the company in a privately placed share units offer.

Joined in the suit as co-defendants were Lotus Capital Limited, Stanbic IBTC Asset Management Limited, IHS Holding Limited and INT Towers Llmited.

Mekwunye contended at the Federal High Court that after buying about 5,000 MTN Linked Units share through MTN’s nominee, Stanbic IBTC Asset Management Limited via a private placement memorandum, the firm failed to fulfill its obligation of converting the share units into MTN Nigeria shares.

But ruling on a preliminary objection raised by MTN on the competence of the suit, Justice Mojisola Olateru asked parties to explore the arbitration clause embedded in the disputes contract.

Dissatisfied with the ruling of the lower court, Mekwunye through a motion on notice filed on February 26, approached the Court of Appeal.

He insisted in the appeal papers that the crux of the matter is the failure of the respondents to list MTN shares in NSE in 2013 as agreed by parties and that until the suit or appeal is properly determined, MTN ought not be allowed to list its shares at the stock market.

In an affidavit in support of the motion on notice, the appellant averred that sometime in February, 2008, Lotus Capital and Stanbic IBTC Asset Management via a private placement memorandum, represented that MTN International was offering to allocate shares of MTN Nigeria to the Nigerian public as investors through private placement arrangement.

According to the deposition, Stanbic IBTC Asset Management which was appointed as nominee for the  MTN linked offer, subsequently engaged Lotus Capital Limited to procure investors.

Mekwunye bought 5,000 units of the shares at the rate of $122,800 (N18, 376, 800,00).

The appellant averred that the nominee structure as spelt out in the agreement papers was to last for three months after which the shares will be transferred to an exit special purpose vehicle (SPV) which will then be exchanged for MTN Nigeria shares.

According to the appellant, at the end of three years, the respondents failed to create the agreed exit SPVon the ground that MTN International is already quoted on the Johannesburg Stock Exchange.

He further averred that the respondents opted to create an alternative exit mechanism which is not listed on NSE without his consent or knowledge.

Mekwunye claimed that series of deductions were made on his share units by the respondents in the new agreement which he never gave his consent.

No date has been fixed for the hearing.