MTN is dropping its court case against the Nigerian government, and has paid, without prejudice, a ‘good faith’ sum of R3.8 billion in the hope that it can reach a settlement over its R60 billion fine in the country.<\/p>\n
MTN has announced that it has made a “good faith” payment of 50 Billion Naira (US$250 million) to the Federal Government of Nigeria on the basis that this will be applied towards a settlement.<\/p>\n
Further, in an effort to achieve an amicable settlement, MTN has agreed to withdraw the matter from the Federal High Court in Lagos, it said.<\/p>\n
Phuthuma Nhleko in his capacity as Executive Chairman of MTN Group and a director of MTN Nigeria is continuing to lead the team engaging the Nigerian Authorities with a view to settling the matter, MTN said.<\/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
The ongoing matter had a massively negative impact on the group’s financials, leading to an expected 20% drop in headline earnings for its latest financial year.<\/p>\n
Nigeria makes up for nearly 40% of MTN’s sales.<\/p>\n
The group warned shareholders to exercise caution in dealing with its shares while the matter continues.<\/p>\n
MTN’s share price jumped 4.5%\u00a0from R125.10 before to R130.76 after the announcement.<\/p>\n
MTN shares slump on earnings warning<\/a><\/strong><\/p>\n MTN full year earnings to take a massive knock<\/a><\/strong><\/p>\n MTN in stand-off over massive fine: report<\/a><\/strong><\/p>\n