MTN Group Ltd is making \u201csteady progress\u201d with Nigerian authorities in talks about $10.1 billion in claims, encouraging Africa\u2019s largest wireless carrier that it can settle the long-running dispute out of court.<\/p>\n
The South African company is in ongoing discussions with Nigeria\u2019s central bank and other institutions and is \u201cnarrowing down what the key issues are,\u201d chief executive officer Rob Shuter said in an interview in Cape Town on Tuesday. MTN\u2019s strategy is twofold: seek legal action while simultaneously looking for an amicable resolution, he said.<\/p>\n
\u201cWe would like a resolution out of court and with normal engagements as that would be faster than a court process,\u201d he said.<\/p>\n
Shuter\u2019s comments indicate the two sides could be nearing a deal to resolve the dispute, which has been running since the central bank accused MTN in late August of illegally repatriating $8.1 billion from the country.<\/p>\n
That was followed by a secondary allegation that the Johannesburg-based operator owed $2 billion in back taxes, a matter set for a court hearing early next month.<\/p>\n
MTN\u2019s shares rose 1.5% to R81.11 after Shuter\u2019s comments, paring the decline since the crisis erupted to 25%.<\/p>\n
The impasse has at least temporarily derailed MTN\u2019s plans to sell stock in its Nigeria unit in Lagos, and that\u2019s contributed to the share price drop, according to Shuter. \u201cWhile we are committed to a listing, this has complicated the process. A resolution will help to get the listing on the way,\u201d he said at a telecommunications conference.<\/p>\n
MTN pledged to list in Lagos as part of a settlement of an earlier fine for missing a deadline to disconnect customers without proper registration.<\/p>\n
The stock is down by more than 50% since the start of that first dispute in 2015, which also led to an overhaul of management and Shuter\u2019s arrival from Vodafone Group Plc.<\/p>\n
Earlier on Tuesday, Shuter indicated that he had no intention of walking away from Nigeria, announcing plans to seek a mobile-banking license in the country. Africa\u2019s most populous nation is MTN\u2019s biggest market with more than 64 million customers, and the company reported a margin of 43% on its Nigerian earnings before interest, taxes, depreciation and amortization in the third quarter.<\/p>\n