MTN to list shares on Nigeria Stock Exchange as part of the $1.7 billion fine agreement

South African telecoms group MTN will take immediate steps to list shares in Nigeria as part of a deal to settle a dispute over unregistered SIM cards and will also issue an apology, according to a copy of the agreement seen by reporters.

According to a company statement, after months of negotiations and appeals, it had agreed to pay a fine of US$1.7 billion in a settlement with Nigeria’s communications regulator for failing to deactivate more than 5 million unregistered SIM cards.

Nigeria, agreed to reduce the fine initially set at US$5 billion by the Nigerian Communications Commission in October last year.

Under the agreement MTN will strengthen its presence in Africa’s largest economy by listing its local unit.

“MTN undertakes immediate steps to ensure the listing of its shares on the Nigerian Stock Exchange as soon as commercially and legal possible after the date of execution,” the agreement said.

The South African mobile phone giant – Africa’s largest wireless carrier – will also issue an apology to the Nigerian government and people within one month of the execution of the deal, the agreement said. The group – which filed a lawsuit against the fine before opting for an out-of-court deal – will also cover its own legal costs, the agreement said.

Nigeria has been cracking down on unregistered SIM cards, concerned they are used for criminal activity in a country battling an insurgency by Islamist militant group Boko Haram. The fine will be paid by MTN Nigeria over 3 years.

MTN has 62 million subscribers – which accounts for approximately one third of its revenues.

Source: Reuters