MTN absolved of R200 billion fine
MTN Group Ltd. extended gains after Nigerian lawmakers ruled that allegations of illegal repatriation of almost $14 billion (R198.2 billion) were unfounded and the wireless company hadn’t violated the law.
There were no “proofs of collusion to contravene the foreign exchange laws,” a Senate investigative committee said in its report released on Wednesday in the capital, Abuja.
“There was evidence of massive capital outflow but that alone is not conclusive that a crime has been committed,” it said.
The shares rose as much as 0.5% in Johannesburg, following a 2.3% gain late Wednesday when the ruling was first reported.
That values Africa’s biggest mobile-phone company by sales at R242 billion ($17 billion).
Nigeria’s decision to drop the case indicates that relations between the government and the country’s mobile market leader are on the mend following the settlement of a $1 billion fine last year.
MTN has agreed to list its local unit on the stock exchange in Lagos, and Chief Executive Officer Rob Shuter said last week the IPO was on track to conclude in about six months.
The penalty levied by the Nigerian Communications Commission was for missing a deadline to disconnect about 5 million subscribers in a security crackdown.
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