MTN shares fell about 12,5% yesterday afternoon on news that the pan-African telecommunications company faces a R71-billion fine from Nigerian authorities.
The company’s stock continued to fall this morning.
Yesterday’s trading saw 12,49% knocked off MTN’s share price, which closed at R167.00. By 11:30 this morning it was trading at R164.65, a further 1,41% down.
The Nigerian Communications Commission (NCC) yesterday imposed a 1,04-trillion naira – about R71-billion or $5,2-billion – fine on MTN Nigeria.
According to a statement from MTN, the fine relates to the timing of the disconnection of 5,1-million MTN Nigeria subscribers who were disconnected in August and September 2015.
The total amount is based on a fine of 200 000 niara for each unregistered subscriber.
“MTN Nigeria is currently in discussions with the NCC to resolve the matter in recognition of the circumstances that prevailed with regard to these subscribers,” the company states.