MTN Group’s record US$1,7bn Nigerian fine is about to get a whole lot cheaper. By Loni Prinsloo. MTN Group’s record US$1,7bn Nigerian fine is about to get a whole lot cheaper. MTN rose the most in a week on Friday as investors prepared for a slump in the Nigerian naira after Africa’s second-biggest crude producer’s central bank said it will let the currency float and weaken next week.
A devaluation will result in a significant discount to the 330bn naira fine that MTN agreed for missing a deadline to disconnect unregistered users in Nigeria, its biggest market.
MTN rose as much as 5,3% in Johannesburg and advanced 4,3% to to R143,61 rand at 12.53pm, valuing the company at R265bn.
“Removing the currency peg will not only reduce the fine, but will improve MTN’s ability to do business in Nigeria in general,” said Mergence Investment Managers analyst Peter Takaendesa. “The company needed the liquidity to further expand its network in the country and move some money around to pay dividends.”
The timing of Nigeria devaluation is a boon for MTN, which reports its financial results in South African rand. The company reached the deal to pay the fine, one-third of an original penalty, after […]