MTN cautions investors on reports about Nigerian fine
by Staff Writer,
2016-03-11 09:20:31.0
MTN Group said on Friday that it continued to engage with the Nigerian authorities in an attempt to ensure an "amicable" resolution on its fine.
The telecoms group said it was aware of "various reports" that had appeared in newspapers on Thursday concerning the fine.
The Nigerian Communications Commission fined MTN $5.2bn, later reduced to $3.9bn, for its failure to register subscribers as required by law.
News reports said MTN had further requested a reduction to $1.5bn. Reuters said on Friday it had seen documents confirming this.
"MTN has previously advised shareholders not to make decisions based on press reports and MTN again urges its shareholders to refrain from doing so.
"Shareholders are therefore advised to continue to exercise caution when dealing in the company’s securities until a further Sens announcement is made by MTN," the company said.
The fine came up in President Jacob Zuma's visit to Nigeria earlier this week. Nigerian President Muhammadu Buhari said MTN was negotiating with the telecoms authority and had withdrawn its court case over the fine.
Mr Buhari said the main issue was security. "The concern of the federal government was about the security‚ not the fine imposed on MTN. Unregistered SIM cards are being used by terrorists.
"That was why (the) NCC asked MTN‚ Glo and the rest of them to register them.
"MTN was slow and contributed to the casualties. That was why the NCC imposed the fine on them."
With AFP
An employee of mobile phone operator MTN tries to register a client with the network in the Obalende district of Lagos on Tuesday. Picture: AFP PHOTO/PIUS UTOMI EKPEI
MTN Group said on Friday that it continued to engage with the Nigerian authorities in an attempt to ensure an "amicable" resolution on its fine.
The telecoms group said it was aware of "various reports" that had appeared in newspapers on Thursday concerning the fine.
The Nigerian Communications Commission fined MTN $5.2bn, later reduced to $3.9bn, for its failure to register subscribers as required by law.
News reports said MTN had further requested a reduction to $1.5bn. Reuters said on Friday it had seen documents confirming this.
"MTN has previously advised shareholders not to make decisions based on press reports and MTN again urges its shareholders to refrain from doing so.
"Shareholders are therefore advised to continue to exercise caution when dealing in the company’s securities until a further Sens announcement is made by MTN," the company said.
The fine came up in President Jacob Zuma's visit to Nigeria earlier this week. Nigerian President Muhammadu Buhari said MTN was negotiating with the telecoms authority and had withdrawn its court case over the fine.
Mr Buhari said the main issue was security. "The concern of the federal government was about the security‚ not the fine imposed on MTN. Unregistered SIM cards are being used by terrorists.
"That was why (the) NCC asked MTN‚ Glo and the rest of them to register them.
"MTN was slow and contributed to the casualties. That was why the NCC imposed the fine on them."
With AFP
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