MTN gets some breathing space for its multibillion dollar fine
MTN felt the wrath of the Nigerian telecoms regulator after it slapped the company with a $5.2 billion fine three weeks ago.
MTN was due to settle the fine today, but the regulator has granted the company an extension as negotiations continue between the two parties over the fine.
Let's take a closer look at what's going on…
Talks continue between MTN and the Nigerian telecoms regulator
The Nigerian telecoms regulator has “waived a November 16 deadline to settle a $5.2 billion fine,” reports Fin24. This as negotiations continue between MTN and the regulator.
MTN informed its shareholders of the development this morning via a SENS announcement. The company is already under scrutiny from the JSE for not advising the market timeously of developments regarding the fine in the first place.
The company advised the Nigerian telecoms regulator has “agreed that the imposed fine will not be payable until the negotiations have been concluded,” says IOL. MTN says the negotiations “include matters of non-compliance and the remedial measures that may have to adopted to address” it.
The company says its shareholders should “continue to exercise caution when dealing in the company’s” shares, notes BDLive.
And following speculation that MTN asked the regulator to accept the fine in instalments, the company denies this, says the SABC. It says it’s waiting for the regulator’s decision “on a way forward”.
MTN shares have fallen sharply
Since news broke of the fine MTN was facing, its “shares have lost almost a quarter of their value,” adds Fin24. You can see this on the chart below…
At time of writing, shares in MTN were trading 0.68% higher for the day at R145.99.
Time will tell what the outcome of the negotiations between the Nigerian regulator and MTN bring.
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