Yesterday saw the confirmation of a letter received from the Nigerian Communications Commission (NCC) to mobile network, MTN, stating that the impending fine of $5.2 billion (R74 billion) had been reduced to $3.4 billion (R48.8 billion). This, however, was superseded by a second letter received later that day, informing the company that the “fine had actually been reduced by 25% to 780 billion Naira and not by 35% to 674 billion Naira, as was stated in the first letter,” said MTN.
This information takes the fine from $3.4 billion to $3.9 billion (R56 billion). The payment deadline of 31 December 2015 still stands.
According to MTN, neither letter stipulates any detail on how the reductions were determined.
The company is in the process of considering both letters as they aim to arrive at a decision that is essentially best for all parties involved.
“Executive Chairman, Phuthuma Nhleko, will immediately and urgently re-engage with the Nigerian Authorities before responding formally,” stated MTN.
As before, shareholders are advised to exercise necessary and due caution when dealing with the Company’s securities as they await a further announcement.