New Street: MTN (Buy) Nigerian banking license in the pipeline. Positive momentum set to continue
In October 2015, the Nigerian regulator slapped MTN with a US$5bn fine. Fast forward 6 years (almost to the date), and in a “bank-led” regulatory environment MTN (and Airtel) has been issued an agreement in principle for a full service Payment Service Bank (PSB) license in Nigeria. There is no doubt that relationships with the authorities has improved massively, and this should (and has to a certain extent) been reflected in the shares. But sentiment aside, the potential value uplift of a PSB license in Nigeria is significant – we cautiously estimate it could be worth R22/share at least. This note shows how we reach this conclusion.
MTN Group is a holding company engaged in the investment in the telecommunications industry offering voice services via 2G and 3G networks, including prepaid and postpaid airtime, please-call-me message service, international roaming, electronic voucher distribution services and community payphones, mobile and fixed data products, including short message service (SMS), multimedia message services, internet access, MTN MobileMoney, content portal MTN Play, Google SMS information services, USSD services and corporate data services. Co.'s operations are divided into the following three regions: South and East Africa, West and Central Africa, and the Middle East and North Africa.
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
- Pan European Telecom Services and Cable
- US Telecoms, Cable, Satellite and Towers
- Global Emerging Market Telecoms
- Japan Telecoms
- Asian Internet
- Pan European Healthcare
- Global healthcare thematic research
We provide debt research on:
- Pan European Telecom Services and Cable
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.