MTN |
MTN Group Ltd. is in advanced negotiations about reducing a record
$5.2 billion penalty imposed by Nigerian regulators on Africa’s largest
wireless operator, according to people familiar with the matter. The
shares reversed earlier losses.
MTN will probably get a lower
fine, which was imposed after the Johannesburg-based company failed to
meet a deadline to disconnect 5.1 million unregistered subscribers, said
one of the people, who asked not to be identified because the matter is
private. It’s not clear by how much the regulator is willing to cut the
penalty, the person said.
The mobile-phone company has until Nov.
16 to pay the levy, which is based on a charge of 200,000 naira
($1,005) for each unregistered customer. MTN Chairman Phuthuma Nhleko
will lead the conversations with the Nigerian Communications Commission after Chief Executive Officer Sifiso Dabengwa resigned over the weekend. The company’s shares have lost almost a fifth of their value since the fine was made public two weeks ago.
MTN shares reversed earlier losses to gain 1.6 percent to 160.01 rand as of 11:49 a.m. in Johannesburg, giving the company a market value of 296 billion rand ($21 billion).
Dabengwa
left after taking responsibility for the penalty, and Nhleko will act
as executive chairman for a maximum of six months. Nigerian
Communications Commission spokesman Tony Ojobo declined to comment.
Bloomberg
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