MTN Shares Increase On News Of Nigeria Dispute Settlement
MTN Group shares shot up by 4 percent on Friday 23 November 2018 with traders attributing the rise to the reports that Nigeria’s central bank was very close to reaching an agreement over an $8.1 billion dispute with the South African telecoms giant.
The stock increased by as much as 4.1 percent before trimming gains to trade around 2.14 percent higher at over $6.00 as of 0900 GMT.
Ryan Woods of Independent Securities said that it seemed as though something was about to be finalised between CBN and MTN, and the share price was a reflection of that.
A second trader declared that the disputed amount could still be reduced to a lesser amount.
It was recently reported that the Central Bank of Nigeria had started reviewing the information provided by telecoms service provider, MTN, and four banks sanctioned over the alleged illegal repatriation of funds.
The apex bank said that the review of details submitted by the four banks, accused of assisting the South African telecoms group to repatriate $8.1 billion illegally, is being done with the goal to reach an amicable resolution.
On August 29 the central bank ordered MTN and the four banks to bring back the $8.1 billion back to Nigeria that it alleged the telecoms firm sent overseas in breach of foreign exchange regulations. The scandal affected shares in MTN which fell by nearly a third in the Johannesburg stock market after the news broke.
Following that, the Apex Bank fined and debited the four banks including Standard Chartered PLC which it fined 2.4 billion naira ($7.86 million); Stanbic IBTC Bank PLC, fined $5 million; Citibank, fined $3 million; and Diamond Bank PLC, fined almost $700 000.00.
Credit: This article originated from www.nigeriacommunicationsweek.com.ng