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All trading of MTN shares halted on JSE

Mobile service operator MTN is having a rather bad time of things.

First the mobile service operator got hit with R71.75 billion fine from the Nigerian regulator for not cutting off unregistered SIM card, but now reports are coming in that all trading in MTN shares and its affiliates on the Johannesburg Stock Exchange (JSE) has been halted.

According the eNCA, it is believed that the freezing of shares trading is as a result of an investigation launched by the JSE into MTN’s timing of the fine announcement. There has been speculation that insider trading could have played a part.

“The investigation will follow due process to establish whether there have been any breaches of the listings requirements and can be a lengthy process,” the head of the Johannesburg Stock Exchange’s regulatory division, Andre Visser, said in a statement on Friday.

The Nigerian Communications Commission (NCC) issued the $5.2 billion fine over MTN’s failure to deactivate unregistered SIM cards in handsets before a deadline expired. The mobile operator has until 16th November to pay the fine, which is more than double its annual earnings.

According to the Sunday Times, MTN has asked the South African government to help out with paying the fine. Nigerian-based newspaper Vanguard has also been reporting that MTN has agreed to pay the fine in full. Nigeria is MTN largest subscriber base.

The Vanguard reports that high-level meetings were held between the NCC and MTN over the weekend.

“There have been series of meeting at the Presidency between the Vice President Osinbajo and MTN team both from South Africa and the Nigerian arm. MTN wanted a waiver considering their level of investments in the country, but government did not buy the idea of waiver,” it wrote.

 

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