MTN CEO in talks with Nigerian authorities

The fine relates to the timing of the disconnection of 5.1-million MTN Nigeria subscribers who were disconnected in August and September 2015 and is based on a fine of 200,000 naira for each unregistered subscriber.

MTN could also face an investigation from the JSE to determine whether it, among other things, failed to inform the market timeously about its fine in Nigeria.

At the same time, credit rating agencies Fitch and Moody's have lowered MTN's credit rating outlook to "negative" from "stable", citing the regulatory fine. Standard & Poor's has also lowered the group to "BBB-" from "BBB" and placed it on credit watch with negative implications.

News of the fine broke early on Monday in Nigeria but MTN informed shareholders only later that day, saying the fine was related to the "timing" of the disconnection of subscribers.

At 10.13am, MTN was up 1.69% to R156.96, valuing the company at about R285bn.

Source: BDpro