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RADP / Pulse Ghana  >  news  >  business

Telecoms giant loses in $4.7 billion in value after NCC fine

folarin okunola

Earlier the fine had caused the company’s stock to decline to the point of posting the company’s biggest three-day share price plunge since 2008.

A man speaks on a mobile phone as he walks past a MTN shop at a shopping mall south of Johannesburg June 6, 2012. REUTERS/Siphiwe Sibeko
A man speaks on a mobile phone as he walks past a MTN shop at a shopping mall south of Johannesburg June 6, 2012. REUTERS/Siphiwe Sibeko

According to various media reports, investors seem to be losing interest fast in MTN stock after a $5.2 billion fine was slapped on the South African-based company.

This is due to the fact that the company has lost about $4.7 billion in value since the news of the fine imposed on the company by the Nigerian Communications Commission (NCC) broke on Monday.

Nigeria is MTN’s biggest market with the company recording over 62 million subscribers in September. But the fine came as a result of the company’s failure to comply with the Nigerian regulators directives to deactivate over 5 million wrongly registered SIM cards on the company’s network.

READ: Telecom company  seeks to reduce $5.2 billion Nigeria fine

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Earlier the fine had caused the company’s stock to decline to the point of posting the company’s biggest three-day share price plunge since 2008.

Yesterday, MTN Group’s stock declined 2.6 percent to close at 155.85 ran, the lowest the company has recorded since October 2012.

This leaves the company valued at 288 billion rand ($21 billion), about 63 billion rand less than it was valued at the start of the week.

folarin okunola

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