MTN share price goes through the roof on Nigerian settlement

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MTN’s share price went throught the roof this afternoon, on the back of of the announcement that the mobile phone operator has resolved the dispute over a $3.9 billion fine over unregistered customers in Nigeria. By Gugu Lourie

By 13:13, the stock was up 16.8% at R144.51, giving the company a R229 billion market value.

MTN Nigeria has agreed to pay an equivalent of R23.9 billion (Naira 330 billion over three years or $1.671 billion) at the official exchange rate or $902 million (R13.5 billion) at the Lagos Parallel Market Rate.

Furthermore, MTN Nigeria has undertaken to take immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legally possible after the date of execution of the settlement agreement.

The debacle has resulted in MTN Nigeria’s CEO Michael Ikpoki and the head of Regulatory and Corporate Affairs Akinwale Goodluck to resign.

MTN Group CEO Sifiso Dabengwa also tendered his resignation.

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