Public Investment Corporation seeks understanding of MTN from shock fine.

THE Public Investment Corporation (PIC) has asked for a meeting with the management of MTN to get an understanding of the company’s crisis with Nigerian regulators, who have fined it a record $5.2bn for failing to disconnect unregistered SIM cards on its network.

 

Again on Monday, MTN reeled from the shock fine as its stock plunged as much as 9.6%, forcing the JSE to temporarily suspend trading as investors fretted.

MTN has been fined several times by Nigerian authorities in the past five years.

The company’s licence is up for renewal early next year.

After trading resumed the company closed 6.1% down at R148.10 valuing it at R273.4bn. It has lost more than R60bn in value in the past week.

The PIC, MTN’s largest shareholder with a 16.63% stake, is dissatisfied with its handling of its Nigerian business and its lack of transparency.

"We need to understand their (MTN) side of the story," said Daniel Matjila, PIC CEO, on Monday. "We need to understand why they are not complying with the regulations.

"This has cost shareholders a lot of money."

Mr Matjila was in Nigeria on PIC business. Asked if he was there to help MTN in its negotiations with the government, Mr Matjila said the PIC had not been invited to the discussions.

He said MTN should have handled it better as the matter was now problematic.

"Noncompliance with regulations is unacceptable wherever it happens.