₦airaland Forum

MTN Chief Executive Officer, Sifiso Dabengwa has resigned his appointment with the telecommunication company over the company's continued poor performance on the Johannesburg Stock Exchange (JSE) in response to the $5.2 billion fine imposed on MTN Nigeria by the Nigerian Communications Commission (NCC) for failing to disconnect unregistered subscribers as directed by the regulator.

Facts emerging yesterday indicate the company will be facing an uphill task getting Nigerian banks to fund the penalty. This is because, according to Renaissance Capital, a South African-based investment advisory company, MTN is already exposed to the tune of $1.7 billion, coupled with Nigeria’s regulatory obligor limits.

According to analysts at Renaissance Capital, as at first half of 2015, MTN Nigeria had gross debt of $1.7 billion, with 74 per cent of the gross debt in Naira, and the balance 26 per cent in dollar.

However, as at the same date, the company has cash balances of $1.3 billion, implying a net debt figure of approximately $400 million, with 94 per cent of the cash in Naira and the balance six per cent in dollar.

Given the net debt position, therefore, consideration must be given to raising external financing to pay the fine through commercial bank loans, debt instrument and equity raise, which would raise the company’s net debt by 1,606 per cent to $5.6 billion.

Already, MTN Nigeria holds three per cent of first half 2015 system’s loans in Nigerian banks, but with the single obligor limit capped at 20 per cent of equity, the company may have exhausted half of its single obligor borrowing limit.

Meanwhile, MTN has appointed Phuthuma Nhleko, as Executive Chairman in a temporary capacity.

See more here:http://www.vabadon.com/2015/11/ncc-52b-fine-mtn-ceosifiso-dabengwa.html?m=1

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Hope DSTv is watching carefully? It may be your turn tomorrow!!!!

Lazy ppl they cant cool down and think of how to get out of the mess


well na anoda peson prayer gree so

divinehand2003:
Hope DSTv is watching carefully? It may be your turn tomorrow!!!!

abiii,,,bt na because MTN get ppl wey fit bench them na in make us dey gapa oo