Millicom Tanzania, operating under the trade name of Tigo has had its planned initial public offering (IPO) suspended by the Tanzania’s Capital Market and Securities Regulatory Authority (CMSA).
The suspension is over a shareholder dispute, where 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.
The ongoing proceedings left the CMSA with no option except to 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 country’s telecoms operators are all required to float 25% of their shares on the Dar es Salaam Stock Exchange (DSE).