Telecommunications giant, MTN Nigeria Plc, experienced a surge in its share price, closing at N198 per share, after announcing the successful renegotiation of its tower lease contracts with IHS and ATC Nigeria Limited.
MTN’s share price climbed by the maximum allowable 10% on the Nigerian Exchange, reflecting investors’ confidence in the company’s ability to improve its financial health. The deal is seen as a crucial step towards addressing the mismatch between MTN Nigeria’s revenue streams and its foreign currency obligations.
Prior to the renegotiation, the company had been grappling with foreign exchange losses, which had eroded its earnings and led to a substantial decline in its market value.
The unaudited financial statement for the first quarter of 2024 revealed a staggering N888 billion in foreign exchange losses.
