Shares in MTN, the beleaguered mobile operator, continued to make strong progress on Monday morning, amid renewed hope of a settlement deal in Nigeria.<\/p>\n
In trade on Monday morning – 10h30 – shares in MTN advanced 2.65% to R126.25, having surged more than 9% on Friday following news that the Federal High Court in Lagos, Nigeria has given the company until mid March to reach a settlement relating to a multi-billion dollar fine it uncured late last year in the country.<\/p>\n
Shares in MTN had dropped to a low of\u00a0 R109.56, from a 52-week best level of R245, with its current market cap at R227 billion, down from a best of R450 billion.<\/p>\n
The group has lost R80 per share over the past year – or 40% of its value.<\/p>\n
MTN had earlier this month fended off an attempt by the Nigerian government to freeze its accounts, after the Federal High Court turned down the application.<\/p>\n
Nigerian scribe, This Day<\/a>, reported that the application was aimed at preventing the mobile operator from emptying its accounts in 21 commercial banks in the country.<\/p>\n The Nigerian Communication Commission (NCC) fined MTN \u20a61.04-trillion (around R71-billion at the time) in October 2015 for not disconnecting unregistered SIMs on its network.<\/p>\n After negotiations with Nigerian authorities, the fine was reduced by 25% to \u20a6780-billion.<\/p>\n MTN then opted to take the matter to court in Lagos, thereby missing a 31 December deadline imposed by the Nigerian government.<\/p>\n In a statement on Friday, MTN said that the judge adjourned a hearing to 18 March 2016, \u201cin order to enable the parties to try and settle the matter\u201d.<\/p>\n \u201cIf the parties are unable to reach a settlement the matter will then proceed on that date,\u201d it said.<\/p>\n MTN given till March to settle fine in Nigeria<\/a><\/strong><\/p>\n Nigerian court rejects application to freeze MTN accounts: report<\/a><\/strong><\/p>\n MTN in stand-off over massive fine: report<\/a><\/strong><\/p>\n MTN to challenge Nigeria fine in the high court<\/a><\/strong><\/p>\nMore on MTN<\/h3>\n