MTN may face JSE probe over fine notice

The telecommunications giant MTN could be the subject of an investigation by the Johannesburg Stock exchange to determine whether it, among other things, if failed to inform the market timely about its hefty $5.2bn fine in Nigeria.

At the same time credit rating agencies Fitch and Moody’s have lowered MTN’s credit rating outlook to “negative” from “stable”, citing the regulatory fine. Standard & Poor’s has also lowered the group to “BBB-” from “BBB” and placed it on credit watch with negative implications.

News of the fine broke early on Monday in Nigeria but MTN only informed shareholders later that day, saying the fine was related to the “timing” of the disconnection of subscribers.

MTN allegedly breached SIM card registration rules as it failed to disconnect customers with unregistered SIM cards within the required period.

The Nigerian Communications Commission requires mobile network operators to register all customers in a bid to curb crime. The JSE rules require companies to release an announcement without delay on issues that may have a material effect on the share price.

The JSE did not confirm nor deny it was investigating MTN.

Andre Visser, GM for issuer regulation at the JSE, said the JSE “is in conversation with the sponsors in the interest of MTN shareholders