While MTN contests the US$5.2 bn fine which the telecommunications regulator in Nigeria has slapped on it for violation of its licence conditions in Nigeria, it will forge ahead with listing its the black economic empowerment share scheme, MTN Zakhele, on the Johannesburg Stock Exchange (JSE), the mobile communications giant revealed in a statement.
Some had questioned the timing of the listing since announcement of the fine had resulted in a 20% drop of MTN’s share price and temporary halting of its trading on 2nd October 2015. However, it appears the company is confident that it is making a wise move.
In September this year, MTM disclosed that the scheme’s market capitalisation had grown to R9bn, since it was launched in 2010.
Zakhele is an investment vehicle through which previously disadvantaged South Africans can own a stake in the mobile company.
