Johannesburg - MTN has urged its shareholders to exercise after the Johannesburg Stock Exchange (JSE) suspended trading in the mobile network’s shares on Monday morning.
On Monday morning, a report surfaced in the Lagos-based Vanguard about the mobile network having "agreed” to pay a $5.2bn fine it had received from Nigerian regulators for failing to disconnect five million unregistered subscribers.
MTN’s share price subsequently tumbled by around 8% amid the report on Monday morning and the JSE subsequently suspended trading the mobile network’s shares.
Since the suspension in trade, MTN on Monday afternoon further cautioned shareholders.
“The company reiterates that engagements with the Nigerian authorities are continuing and any material developments in these engagements will be communicated to shareholders through SENS,” said MTN in a SENS announcement.
“Shareholders should specifically exercise caution when reacting to information on this matter which has not been released by the company. Shareholders are therefore advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” said MTN.
MTN’s woes regarding the Nigerian fine have also been compounded by a JSE investigation.
On Friday the JSE announced that it was investigating MTN over how it made the announcement of its Nigerian fine. MTN only advised shareholders at 14:04 on Monday October 26 about the fine after media reports about the situation emerged that morning in Nigeria.The JSE said it was also investigating probe possible insider trading at MTN by studying trades made before the MTN SENS announcement on October 26.