MTN has not reached any resolution yet with Nigerian authorities that slapped a R71 billion fine on the telco last week for failing to disconnect customers with unregistered SIM cards.
The operator says it is concerned about "speculation and false information in the media" with regard to the fine and negotiations with the Nigeria Communications Commission (NCC), which it says are still ongoing.
"MTN particularly cautions against reports purporting that the company has agreed a resolution with the NCC on the fine. It is false as no resolution has yet been reached. MTN continues to engage the authorities in Nigeria on this matter," the company says in a SENS statement.
It continues to try to reassure shareholders, as the company's stock has seen a tumultuous week since the announcement, including a brief suspension of the trading of its shares. The mobile operator says stakeholders will be informed of any material developments in its engagements with Nigerian authorities in due course.
"Shareholders have also been asked to exercise caution when reacting to information that has not been released by the company."
According to Reuters, MTN has asked for "leniency" in terms of the fine and has written to Nigerian authorities asking for a review of the fine. Two sources confirmed with the news wire that MTN had sent a copy of a letter addressed to the NCC to Nigeria's presidency.
MTN may also have to face the music in South African Parliament, with Business Report quoting the chairwoman of the portfolio committee on telecoms, Nkhensani Kubayi, saying they are setting up a date for MTN to appear before Parliament to discuss its failure to comply with regulations in Nigeria.
Kubayi told the newspaper that Parliament planned to meet with MTN bosses at the first available opportunity.
MTN executive for group corporate affairs, Chris Maroleng, told ITWeb that the telco "had not received formal notification from Parliament to appear".
Committed to Nigeria
MTN has also confirmed its commitment to its business in Nigeria, saying that over the last 10 years of business in the West African nation, it has "conducted its business in accordance with established principles related to sound corporate governance".
"Since launching more than a decade ago, we have made significant investments in connecting customers to our network. We take these responsibilities and obligations very seriously," says MTN.
"As a company which owes its founding and growth to the emerging world, we are conscious of our responsibility to invest in the growth of local economies and development of communities wherever we operate. Nigeria is no different."
BEE listing to go ahead
In unfortunate timing for the company, its broad-based black economic empowerment scheme, MTN Zakhele, will proceed with its plans to list on the Johannesburg Stock Exchange (JSE) this week.
MTN Zakhele is set to begin trading around 80 million shares on the BEE segment of the exchange's main board tomorrow.
"As MTN Zakhele's only material asset consists of shares in MTN, MTN Zakhele shareholders should consider the cautionary announcement, as well as subsequent announcements released by MTN relating thereto, when trading in MTN Zakhele shares," according to an MTN statement.
The BEE scheme owns 4% of MTN and the timing of the listing could not be worse, as MTN Zakhele's listing price and valuation will likely be heavily affected by the group's stock volatility over the past week.
MTN's stock was trading at around R190 per share last Monday but fell nearly 22% at one point to around R148 a share. The stock has, however, bounced back following news that the NCC had approved the renewal and five-year extension of MTN's licences for operating spectrum in the country. In early trade the stock was valued at around R158.51 a share.
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