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MTN fine has been tripled

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18 REPLIES 18
Preston
Super Contributor
so what? MTN was not prepared to pay the first fine.
Hali
Super Contributor
This was discussed, no ruling has been made to this effect as yet.. If they triple the fine they effectively shutting MTN down in Nigeria.. Tripling fine would take it to R240 billion, MTN group market cap as at COB Thursday was R225 bn..
SimonPB
Valued Contributor
how's that working for them ?
Preston
Super Contributor
All Nigeria is doing, is turning foreign capital away. MTN will take this issue back to court and drag this out for year to come.The issue before the House was a "reduction" not an increase.
Hali
Super Contributor
Rumour has it that Etisalat in interested in acquiring the MTN stake in Nigeria.. Thus they are lobbying government to put pressure on MTN, effectively forcing them to sell them the stake at an impaired value..
THRESHOLD
Super Contributor
OH PLEASE, OH PLEASE, OH PLEASE, let me say it... I told you so. I scripted it almost to the T. This is Africa! Go back to court and the "executive" judge will double it again! RUN!
Preston
Super Contributor
@THRESHOLD, Yes you did, Was their an official communication from the Regulator regarding the revised amount of the fine?
Preston
Super Contributor
@THRESHOLD, Yes you did, Was there an official communication from the Regulator regarding the revised amount of the fine?
THRESHOLD
Super Contributor
PRESTON - It's sad when predicting the outcome involves imagining the worst possible case scenario and then just going with it. The sad truth is that to a greater or lesser degree, this probably applies to all South African listings too.
Preston
Super Contributor
@THRESHOLD, Can the Regulator impose a fine, where the quantum of the fine seriously impedes with the company going concerns/sustainability in the country in which it does operate?
yyy
Occasional Contributor
Just substitute Optimum for MTN and you have the answer.
THRESHOLD
Super Contributor
Yes, It's the law. Most irregular for the court, of its own accord assumes the executive role of reviewing a fine... but this IS Africa, after all. A company can go into insolvency over a fine - that is the directors' responsibility and not the business of the courts. In this instance they are probably "stealing" the licence! So all bets are off.
THRESHOLD
Super Contributor
Yes, It's the law. Most irregular for the court, of its own accord assumes the executive role of reviewing a fine... but this IS Africa, after all. A company can go into insolvency over a fine - that is the directors' responsibility and not the business of the courts. In this instance they are probably "stealing" the licence! So all bets are off.
Preston
Super Contributor
Look to reduce my holding in MTN. I am just grateful/thankful that I am not invested in other SA stocks that does business in Nollywood.
THRESHOLD
Super Contributor
Why not? Shorting is the dangerous course of action!
Preston
Super Contributor
Preston
Super Contributor
@THRESHOLD, I am so tempted to short this piece of ***** , right down to R115.
THRESHOLD
Super Contributor
Careful. Don't you want to see this news hit the mainstream media first.