Tanzania’s Capital Market and Securities Regulatory Authority (CMSA) has suspended the planned initial public offering (IPO) of Millicom Tanzania (Tigo), pending the resolution of a shareholder dispute, writes local newspaper The Citizen. According to the report, lawyers representing Golden Globe International Services have claimed that the British Virgin Islands-registered firm, associated with businessman Yusuf Manji, owns 99% of Millicom Tanzania’s shares, although telecoms group Millicom International Cellular (MIC) is disputing the legal challenge. Golden Globe International Services claims that Millicom Tanzania cannot proceed with its planned share listing, as it was not involved in the preparation of the company’s IPO prospectus.
As a result of the ongoing proceedings, the CMSA has suspended the process of assessing Millicom Tanzania’s proposed IPO, a legal requirement introduced by the government last year under the Finance Act of 2016. The Act, which amended the Electronic and Postal Communications Act of 2010, calls for the country’s telecoms operators to float 25% of their shares on the Dar es Salaam Stock Exchange (DSE).