Barclays talks on African assets fail

BARCLAYS Africa Group said yesterday that talks to buy Egyptian and Zimbabwean operations from the parent ended after they could not agree on price. The two sides failed to agree on terms after “extensive discussions” and decided not to proceed with the proposed combination, the Johannesburg-based lender controlled by Barclays said. Barclays first bought into the Johannesburg bank in 2005 and seven years later agreed to sell its operations in eight African countries to what used to be called Absa. Chief executive Maria Ramos said last year the next step was to buy the units in Egypt and Zimbabwe. – Bloomberg NIGERIA had slashed MTN Group’s massive fine by more than a third to $3.4 billion (R48.9bn), and the chief executive of the embattled Nigerian subsidiary had resigned, Africa’s largest telecoms company said yesterday.

The fine, down from $5.2bn, is still the largest meted out in the telecoms industry, according to experts.

They cited the US Federal Communications Commission fine of $100 million that AT&T is fighting in court.

Nigerian authorities have reduced the fine after five weeks of talks involving government and MTN officials.

MTN’s interim executive chairman Phuthuma Nhleko yesterday relieved the company’s chief executive in Nigeria, Michael Ikpoki, and the head of regulator and corporate affairs, Akinwale Goodluck, with immediate effect.

The developments come in the wake of the resignation of MTN group chief executive Sifiso Dabengwa last month with reports suggesting that he was also pushed out.

The company said its former chief operating officer and chief financial officer in Nigeria, Ferdi Moolman, would replace Ikpoki while Amina Oyagbola would take over as the head of regulatory and corporate affairs.

Moolman was previously the chief operating officer at MTN Irancell.

An MTN insider said the company had to sacrifice Ikpoki and Goodluck to pave the way for negotiations on the fine.

“So they had to leave to ensure a clean start for MTN in Nigeria,” the source said. Equity research analyst at Imara SP Reid Stockbrokers, Sibonginkosi Nyanga, said the company had no alternative but to dismiss the two to save its reputation.

He said the resignation of the two was inevitable.

“That was going to happen one way or another. Phuthuma did what Dabengwa should have done a long time (ago) to protect the company,” Nyanga said. “The company had to instil some sense of confidence