South African telecom giant, MTN, has issued a statement stating that the Nigerian government has shifted the deadline for payment of a $5.2billion fine imposed on the company over its failure to disconnect telephones of over 1 million unregistered mobile phone users in the country.
The statement indicated that far -reaching negotiations are ongoing to resolve the issue.
See full statement below
Update to shareholders and further cautionary announcement
Johannesburg – Shareholders are referred to the announcements issued by the Company on the Stock Exchange News Service (“SENS”) of the JSE Limited on 26 October 2015, 30 October 2015, 2 November 2015, 3 November 2015 and 9 November 2015, respectively.
Shareholders were advised in previous SENS announcements that the Company would update shareholders on all material developments on this matter.
Shareholders are advised that the Executive Chairman of the Company, Mr Phuthuma Nhleko, has personally met with the Nigerian authorities to continue the ongoing discussions with them regarding the fine of N200,000 for each unregistered subscriber (“the fine”), the equivalent of US$5.2 billion imposed on MTN Nigeria by the Nigerian Communications Commission ("NCC"). These discussions include matters of non-compliance and the remedial measures that may have to be adopted to address this.
Although the Nigerian Communications Commission (“NCC”) set a deadline for payment of the fine by Monday, 16 November 2015, shareholders are advised that the Nigerian authorities have, without prejudice, agreed that the imposed fine will not be payable until the negotiations have been concluded.
MTN is committed to resolving the matter together with the NCC as soon as possible and will continue to update stakeholders of any material developments regarding the afore-mentioned fine via SENS.
Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.