JSE suspends trading in MTN shares, fails to convince NCC to lower penalty
By Gareth van Zyl
Johannesburg – An MTN spokesperson has confirmed to Fin24 that the mobile network's shares on the Johannesburg Stock Exchange (JSE) have been suspended on Monday morning.
Chris Maroleng, the executive for group corporate affairs at MTN Group, told Fin24 by phone that trading in the company's shares had been suspended.
MTN's share price has been under pressure in the last week after it confirmed last week that it's been fined $5.2bn by Nigerian regulators for allegedly not disconnecting up to five million unregistered SIM cards.
This is a developing story.
Fin24
Source: http://www.fin24.com/Tech/
MTN Shares Halted in Johannesburg Amid Nigeria Fine Uncertainty
By Neo Khanyile and Chris Spillane
(Bloomberg) — Trading in MTN Group Ltd. shares was halted on the Johannesburg Stock Exchange on Monday amid uncertainty over a $5.2 billion fine for failing to comply with an order to disconnect customers with unregistered phone cards.
The stock fell as much as 9.7 percent before paring losses and was the biggest decliner on the benchmark FTSE/JSE Africa All Share Index, according to data compiled by Bloomberg. Trading was halted with the stock 5.3 percent down at 149.48 rand by 10:33 a.m. in Johannesburg. The securities have slid 22 percent since MTN said it's facing the fine on Oct. 26.
MTN failed to convince the Nigerian Communications Commission to lower its penalty, CAJ News in Nigeria reported, citing a company official familiar with the talks. MTN hasn't agreed to the fine and continues to meet with Nigerian authorities to challenge it, a person familiar with the matter told Bloomberg, asking not to be identified because the matter is private.
Investors "were expecting something to come out at the weekend and it hasn't and now the pressure is on because they've been told that they have to pay this fine by next week," Rob Pietropaolo, a trader at Vunani Private Clients (Pty) Ltd., said by phone from Johannesburg. "Because of their lack of communication, investors are punishing the share and obviously running for safety."
MTN will release a statement later on Monday, Nik Kershaw, head of investor relations, said by phone. A statement will be released by the JSE, Pheliswa Mayekiso, a spokesman for the bourse, said by phone.
MTN spokesman Chris Maroleng declined to comment on the talks with regulators. MTN has been in talks with the government, but "I don't have an update," Tony Ojobo, a spokesman for the Nigerian Communications Commission, said by phone from Abuja, the capital. Vice President Yemi Osinbajo's spokesman, Laolu Akande, declined to comment immediately about the reports MTN met with the presidency.