THE BAD

Finweek English Edition - - THE WEEK -

MTN has fi­nally reached an agree­ment with the Nige­rian reg­u­la­tor to set­tle a fine, ini­tially set at $5.2bn, for its fail­ure to de­ac­ti­vate un­reg­is­tered sim cards. While its share price has jumped upon news of the set­tle­ment, which will see MTN pay the equiv­a­lent of nearly $1.7bn over three years and list MTN Nige­ria in Lagos, its shares are still trad­ing sig­nif­i­cantly be­low the lev­els seen in Oc­to­ber 2015 when the fine was im­posed. Se­ri­ous ques­tions also re­main about the stan­dard of MTN’s cor­po­rate gov­er­nance, the lack of trans­parency re­lated to share­holder com­mu­ni­ca­tion, and its abil­ity to com­ply with rules and reg­u­la­tions.

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