Shares of Nigeria’s first publicly listed internet provider, Legend Internet Plc, soared 10 percent on Wednesday after the company announced a planned merger with Spectranet, the country’s largest Internet Service Provider (ISP) by subscribers.
A unit of the internet provider on the country’s bourse closed at N6.60 on Tuesday, March 24, 2025, compared to its previous closing price of N6.00. That share price has now risen to N7.26 on Wednesday, reflecting investors’ optimism towards the merger talks that are expected to be completed by the end of the second quarter of 2026.
Legend Internet began the year with a share price of 5.29 NGN and has since gained 24.8 percent on that price valuation, ranking it 62nd on the NGX in terms of year-to-date performance.
The rally follows the proposed transactions, disclosed in a regulatory filing to the Nigerian Exchange (NGX) on Monday, which will see both companies combine their businesses under a unified corporate structure.
Read also: Legend Internet swings to loss as costs rise, revenue slides
The deal is, however, pending approval from the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC).
Upon completion, the combined company will have an estimated market capitalisation of N80 billion, making it Nigeria’s largest ISP. The merger will also create a stronger national platform with the scale and infrastructure required to meet the country’s growing demand for high-speed connectivity.
The merger is expected to generate substantial synergies, including optimised network infrastructure, operational efficiencies, and more strategic investment in technology. These synergies will enhance profitability and position the company for sustainable growth.
Read also: Legend Internet, Spectranet merger is a strategic accelerator for our long-term vision – Bada
The merger brings together two players which have long competed for the same urban broadband customers and signals that Nigeria’s internet service provider market may be entering a consolidation phase.
Legend’s board, which approved the transaction in October 2025 before shareholders ratified it in November, framed the deal in terms of network capacity and operational efficiency.
“The proposed merger aligns with Legend’s long-term strategy to expand broadband infrastructure and strengthen its position within Nigeria’s telecommunications sector,” Legend said in the filing.
“The transaction is expected to deliver significant strategic and financial benefits, including enhanced network capacity through the integration of fibre and wireless infrastructure, improved operational efficiency, and expanded coverage across key urban markets.”
Read also: Legend Internet’s historic NGX win signals new era of market leadership
For Legend Internet, the merger could provide a faster route to scale than organic growth alone. The company, which listed on the NGX in April 2025 through a listing by introduction, has seen a volatile stock performance.
But the announcement is reinvigorating some glimmers of hope for shareholders and investors alike that the company may now be on track for sustained growth and improved earnings performance.