MTN Issues Cautionary Announcement Over N1.04 tri. Fine

Regarding the recent N1 trillion fine imposed by the Nigerian Communications Commission (NCC) on MTN Nigeria, the mobile operator has issued a cautionary announcement to shareholders.

The announcement stated, "Further to the SENS announcement which the Company issued on 26 October 2015 relating to this matter shareholders are advised that the Group CEO is engaging with the Nigerian authorities on the regulatory aspects of this matter. In addition senior management of the Company and its advisors are currently engaging with the JSE Limited on the timing of the aforementioned SENS announcement. The Company will update shareholders through SENS on these engagements as soon as possible."

Shareholders are advised to exercise caution when dealing in the Company's securities until a further announcement is made, according to MTN.

On 26 October MTN confirmed that MTN Nigeria had been issued with a fine equivalent to US$5.2 billion, and said this relates to the timing of the disconnection of 5.1million subscribers who were disconnected in August and September 2015.

"... and is based on a fine of N200,000 for each unregistered subscriber. MTN Nigeria is currently in discussions with the NCC to resolve the matter in recognition of the circumstances that prevailed with regard to these subscribers," the company stated.

The company remains tight-lipped on details and attempts to reach MTN Nigeria for comment have, thus far, not succeeded.