MTN Group Ltd. agreed to pay a 330 billion naira ($1.7 billion) fine to the Nigerian government, one-third of the original penalty, removing a major uncertainty hanging over the phone carrier’s operations in its largest market.

MTN rose as much as 21 percent in Johannesburg. It traded 16 percent higher at 143.50 rand as of 1:21 p.m, on track for the biggest gain since 2008.

Africa’s biggest mobile-phone company will also “take immediate steps” to list shares of its Nigeria unit on the country’s stock exchange, Johannesburg-based MTN said in a statement on Friday. The fine will be paid over three years.

The agreement ends eight months of start-and-stop negotiations with Nigerian officials over how to settle the fine, which was levied for being slow to disconnect customers unregistered in the country. Chairman Phuthuma Nhleko came out of retirement to oversee the process, hiring former U.S. Attorney General Eric Holder to lead negotiations.
The deal “is the best outcome for the company,” Nhleko said in the statement. “The relationship between MTN, the Nigerian government and the Nigerian Communications Commission has been restored and strengthened.”

MTN’s battle with Nigerian authorities over payment of the fine had cost the company its status as Africa’s highest valued telecommunications operator, lowering the stock price by one-third amid a lack of clarity about the negotiations and posturing by Nigerian politicians. The government originally issued a $5.2 billion penalty and later lowered it to $3.9 billion.

MTN was hit with the penalty after failing to comply on time with an order to disconnect 5.1 million customers deemed by the regulator to be unregistered in Africa’s most populous country. Nigeria has sought to cut off service to some users as they fight crime and in a country with poor identity records. The insurgent group Boko Haram’s campaign to establish its version of Islamic law in Nigeria has left thousands of people dead since 2009.

MTN engaged Holder, a partner at law firm Covington & Burling LLP, to challenge the penalty. Holder, the U.S. attorney general from 2009 to 2015, now advises clients on litigation matters.

Sifiso Dabengwa resigned as CEO of MTN in November to take responsibility for the dispute.

Source: http://www.bloomberg.com/news/articles/2016-06-10/mtn-agrees-to-pay-1-7-billion-nigeria-fine-over-three-years

But where is lalasticlala sef

I am sure more workers would be sacked and replaced with robotics.
The Visafone organ (which they acquired) might be sold to its rivals.
Voice call rates would be dropped by competition soon to teach them some lesson.
Data rate is already down and income from that stream would be hampered within the three years.
I suspect that the listing on the stock exchange would not attract significant subscription.
How much would its stocks be worth ---at the point of enlisting ----maybe N20/per share

This is very good news. $1.7B income over 3 years for doing absolutely nothing beyond making threats. Oshofrey gat nothing on this fine

But abeg make dem no let the avengers hear about this o.


Make dem no go blow up the network or software that'll be used to transfer the cash. Dickson is already about selling the state university due to dwindling revenue.

***spreads mat on thread***

Sanity reigns when you do not have corrupt leaders at the helms of affairs.

MTN felt it was business as usual and they could easily buy their way through, the same way they have been doing in the past.

This is victory for sanity and anti-corruption.

SuperS1Panther:
Sanity reigns when you do not have corrupt leaders at the helms of affairs.

MTN felt it was business as usual and they could easily buy their way through, the same way they have been doing in the past.

This is victory for sanity and anti-corruption.

from one trillion to 330 billion....

it will continue to go down till 1 million

Now, with $1.7 billion in the federal Kitty, the federal government should forget about that $2b Chinese loan.

Dymaco:


from one trillion to 330 billion....

it will continue to go down till 1 million

Lol.

It is an awoof money for the country. It ain't going down by an inch because it is called "full and final".

#freemoney

Next: Oil companies.

SuperS1Panther:


Lol.

It is an awoof money for the country. It ain't going down by an inch because it is called "full and final".

just know that Mtn might end up not paying this fine