The pending $5.2 billion (R72 billion) fine issued against MTN does not impact the "cordial relations" between South Africa and Nigeria.
This is according to minister in the presidency for planning, monitoring and evaluation, Jeff Radebe, who briefed the media yesterday following Cabinet's fortnightly meeting.
"This issue does not affect the cordial relations between Nigeria and South Africa. It's in compliance with the laws and regulations of Nigeria. That is the context within which we should look at this matter," says Radebe.
He says the South African government is awaiting the outcome of talks between MTN and Nigerian authorities.
"We do hope that the talks between MTN and the Nigerian authorities will bear fruit because we are very desirous that economic relations between Nigeria and South Africa continue from strength to strength," adds Radebe.
MTN got itself into hot water in the West African nation, which is its biggest market, for failing to disconnect over five million customers with unregistered SIM cards. The fine from the Nigerian Communications Commission (NCC) is the equivalent of around one trillion naira, and is made up of a fine of N200 000 for each unregistered subscriber.
Radebe says Cabinet has noted developments in the matter and hopes discussions will result in the speedy resolution of the dispute, to ensure MTN continues its business of investing in the Nigerian economy.
"The relations between our two countries are excellent. Our understanding is that the president of Nigeria is very serious about fighting corruption in his country... Cabinet has not yet been appointed by [president Muhammadu Buhari] because he wants a new chapter in Nigeria," says the minister.
Zakhele lists
Despite MTN's tumultuous two weeks, its broad-based black economic empowerment scheme, MTN Zakhele, listed on the Johannesburg Stock Exchange (JSE) as planned yesterday.
The scheme, which owns 4% of MTN, became the first BEE scheme to list on the exchange's amended BEE Segment. MTN Zakhele announced its listing plans earlier this year, moving from an over-the-counter (OTC) trader because of OTC regulation changes by the Financial Services Board.
The company's OTC share trading platform stopped operating on 16 October and the last traded price was R102.30 per share. MTN's volatility due to the Nigerian fine saw Zakhele list at just R75.20 a share as an opening price yesterday, despite shareholders being unable to trade over the previous weeks.
The market was not kind to the new listing and at yesterday's close, the stock, trading under the code MTNZBE, had fallen another 13% and was worth R65.01 per share.
On 16 October, the market cap of the BEE scheme was R8.2 billion but with the stock trading at around the R65 this morning, the market cap is now sitting at around R5.3 billion.
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