Trading in MTN Group Ltd. shares was halted on the Johannesburg Stock Exchange on Monday amid uncertainty over a $5.2 billion fine for failing to comply with an order to disconnect customers with unregistered phone cards.
The stock fell as much as 9.7 percent before paring losses and was the biggest decliner on the benchmark FTSE/JSE Africa All Share Index, according to data compiled by Bloomberg. Trading was halted with the stock 5.3 percent down at 149.48 rand by 10:33 a.m. in Johannesburg. The securities have slid 22 percent since MTN said it’s facing the fine on Oct. 26.
MTN failed to convince the Nigerian Communications Commission to lower its penalty, CAJ News in Nigeria reported, citing a company official familiar with the talks. MTN hasn’t agreed to the fine and continues to meet with Nigerian authorities to challenge it, a person familiar with the matter told Bloomberg, asking not to be identified because the matter is private.
MTN will release a statement later on Monday, Nik Kershaw, head of investor relations, said by phone. A statement will be released by the JSE, Pheliswa Mayekiso, a spokesman for the bourse, said by phone.
