Nigeria penalty resolution puts fresh wind in MTN's sails
The dividends that were initially demanded to be returned nearly equalled MTN's R165bn market cap
Africa's largest mobile operator, MTN, finally reached a breakthrough after two months of negotiations with the Central Bank of Nigeria over disputed dividend remittances to the tune of $8.1bn (R117.8bn) this week. The central bank had accused the mobile operator of improperly repatriating the dividends between 2007 and 2015, demanding the full amount be returned. MTN said the amounts were dividends meant for MTN Nigeria's international shareholders, and had been remitted within the law. The bank finally concluded shortly before Christmas that the dividends had been remitted properly and no longer had to be returned. MTN shares gained as much as 8% when the news broke on Thursday. The dividends that were initially demanded to be returned nearly equalled MTN's R165bn market cap. The conclusion of the talks means MTN will now have to pay $52.6m in penalties related to preference share transactions from 2008 which the central bank had deemed "irregular". A number of international busin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.