MTN shares rise on Nigeria fine update

2016-01-22 15:42 - Gareth van Zyl, Fin24
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MTN has received a $5.2bn fine in its biggest market Nigeria. (Bloomberg)

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Johannesburg - Shares in mobile network MTN [JSE:MTN] rose over 7% on Friday amid a court update on its multi-billion dollar Nigerian fine.

In October last year, the Nigerian Communications Commission (NCC) slapped MTN with a $5.2bn fine for failing to disconnect five million unregistered SIM cards in that country.

Subsequently, the regulator dropped the fine to $3.9bn after discussions between MTN and regulators.

But MTN in December said it would challenge the fine in Nigeria’s courts as the company said the NCC over-extended its powers.

And on Friday, the Federal High Court in Lagos moved to adjourn the case.

“The judge adjourned the matter to 18 March 2016 in order to enable the parties to try and settle the matter,” said MTN.

“If the parties are unable to reach a settlement the matter will then proceed on that date,” added to MTN.

At 14:59 in Johannesburg on Friday, MTN’s share price was up over 7% to R121.84.

The rebound in MTN’s share price on Friday came as its stock fell from R117.70 to R111.53 in trade on Thursday after Cameroon’s anti-corruption board said that the mobile network owes R1.5bn in taxes.

READ: MTN: 'We've done nothing wrong in Cameroon'

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