(Ecofin Agency) - MTN’s share in stock today 4th December 2015 started with a marked 4.6% decline after the firm announced a negative update relating to the $5.2 billion fine imposed to its Nigerian subsidiary after it failed to disconnect unregistered subscribers within the set deadlines.
“Late on 3 December, the Nigeria Communication Council (NCC) sent a second letter superseding the first, informing the firm that the fine was cut by 25% to NGN780 billion ($3.9 billion), and not by 35% to NGN674 billion ($3.4 billion) as initially stated,” the release published to investors said.
No explanation was given for this last-minute change, just like in the case of the initial reduction. It should be reminded that this case has already cost their positions to Siphiso Dabengwa, former Managing Director of the South African group and to the head of the group’s Nigerian subsidiary. Moreover, various sources are now confirming that this case is taking a diplomatic turn.
According to the Financial Mail, in South Africa, the case is likely to be at the center of talks between Nigeria’s President, Muhammadu Buhari and its South African counterpart, President Zuma, during the summit where China is meeting its African partners which is to end tomorrow. Until further notice, MTN is still to pay the fine latest by December 31, 2015.
