MTN Group Ltd. rose the most in more than six years after its case with the Nigerian Communications Commission, regulators of the Nigeria’s telecommunication sector, was adjourned to allow the sides to reach a settlement out-of-court.
MTN is battling to upturn or strike a less devastating bargain with the Nigerian authorities on a $3.9 billion fine in Nigeria.
Nigeria is the biggest market for the African’s biggest phone operator.
Bloomberg reports that the stock rose as much as 9.3 percent, the biggest gain since May 2009, before paring gains to 121.43 rand at 1:27 p.m. Friday in Johannesburg. The FTSE/JSE Africa All Shares Index rose 2.8 percent.
MTN said last month it would challenge the fine in the Federal High Court in Lagos, arguing that the penalty wasn’t within the powers of the country’s telecommunications regulator to impose. The fine, which was reduced from an earlier $5.2 billion, was levied on MTN for failing to meet a deadline to disconnect 5.1 million unregistered subscribers, as security agencies seek to fight crime and Islamist militants.
“If the parties are unable to reach a settlement the matter will then proceed on that date,” MTN said in the statement.
Though MTN is most expanded network in Nigeria, accounting for about half of total subscribers, many Nigerians see it as being the most unfriendly of all the networks, with its product prices usually insensitive to the local environment
Some Nigerians are yet to forgive the South African telephony operator for refusing to switch to per second billing despite people’s cry for it, until Glo Mobile came offering that service to Nigerians from day one of its operation. from .
