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MTN Group Ltd\u2019s shares rose the most in more than six months after the Nigerian central bank softened its stance over claims that Africa\u2019s biggest wireless carrier illegally transferred $8.1 billion out of the country.<\/p>\n
The Central Bank of Nigeria made the accusation late last month, plunging the South African company into a crisis that\u2019s wiped almost a third off its share price. MTN has since provided additional information that may lead to an \u201cequitable resolution,\u201d a spokesman for the authority, Isaac Okorafor, said in an emailed statement late Wednesday.<\/p>\n
Four banks – Standard Chartered Plc, Citigroup Inc., Stanbic IBTC Plc and Diamond Bank Plc – have also provided further detail on the transactions that will be reviewed by the central bank, Okorafor said.<\/p>\n
The quartet were fined about $16 million between them for enabling the allegedly improper transactions.<\/p>\n
The latest development suggests there may be a way for Johannesburg-based MTN to make a deal with Nigeria, just as the company did two years ago when it negotiated a $5.2 billion fine down to about $1 billion plus a commitment to list its local business in Lagos.<\/p>\n
However, that penalty – related to subscribers that weren\u2019t properly registered in the country – also weighed heavily on the share price, which has yet to recover.<\/p>\n
The central bank\u2019s statement didn\u2019t refer to $2 billion of back taxes MTN is also accused of owing – a claim that comes from the attorney general\u2019s office.<\/p>\n
\u201cWhile this is a step in the right direction, continued dialogue to reach an amicable resolution is a minimum standard expected by the investment community,\u201d Olusola Teniola, president of the Association of Telecommunications Companies of Nigeria, said. \u201cWe look forward to the central bank disclosing the exact reasons for their actions.\u201d<\/p>\n
MTN Nigeria said it couldn\u2019t immediately comment.<\/p>\n
MTN climbed 7.5% to R78.87 by 9:32 a.m. in Johannesburg on Thursday, its biggest gain since March 8. The stock is still down 27% since the $8.1 billion claim was made on Aug. 29, wiping out almost $5 billion of market value.<\/p>\n
MTN\u2019s response to the double accusation was to go to court, saying allegations by both the Nigerian central bank and attorney general are unfounded, malicious and illegal. Chief executive officer Rob Shuter flew to the country to reassure employees of the company\u2019s commitment to the market, MTN\u2019s biggest with about 66 million customers.<\/p>\n
The impasse comes five months before Nigerian President Muhammadu Buhari seeks re-election for a second four-year term. He\u2019s pledged to crack down on graft in Africa\u2019s most populous country, including that perpetrated by companies.<\/p>\n