MTN fine deadline suspended

As the $5.2 billion (about R71 billion) negotiations between mobile network giant, MTN and Nigerian regulators continue, following MTN’s failure to disconnect unregistered users timeously, the deadline for payment has been suspended.

“Although the Nigerian Communications Commission (“NCC”) set a deadline for payment of the fine by Monday, 16 November 2015, shareholders are advised that the Nigerian authorities have, without prejudice, agreed that the imposed fine will not be payable until the negotiations have been concluded,” said MTN Group Corporate Affairs earlier today.
 
They further advised shareholders that the executive chairman, Phuthuma Nhleko, has personally met with the Nigerian regulators and that they are currently still discussing the matter.
 
“These discussions include matters of non-compliance and the remedial measures that may have to be adopted to address this,” said MTN.
 
Despite the bad press that this debacle has received and market commentators questioning the success of a listing amidst a financial crisis, MTN went ahead in listing their BEE (Black Economic Empowerment) scheme, Zakhele on the JSE.
 
“Trade in the MTN Zakhele share is progressing well as more people are verified to trade on the JSE. The closing price on the first day of trade on the JSE on 5 November was R65, it is now trading at about R81,” said Sindi Mabaso-Koyana, chairperson of MTN Zakhele.
 
The mobile giant has continued to urge shareholders and consumers to reference any information with that sent out via the Stock Exchange News Service (SENS).