Below is the communique sent to MTN staff and share holders.
Herewith a further update on the fine imposed on MTN Nigeria and renewal of cautionary announcement: Further to the SENS announcement issued by the Company on 4 December 2015, shareholders are advised that all factors having a bearing on the matter have been thoroughly and carefully considered including a review of the circumstances leading to the fine and the subsequent letters received from the Nigerian Communications Commission (NCC).
MTN Nigeria acting on legal advice has resolved that the manner of the imposition of the fine and the quantum thereof is not in accordance with the NCC’s powers under the Nigerian Communications Act and therefore there are valid grounds upon which to challenge the fine.
Accordingly MTN has followed due process and has instructed its lawyers to proceed with an action in the Federal High Court in Lagos seeking the appropriate reliefs. MTN is advised that in the current circumstances in line with the lis pendens rule (pending legal action) the parties are enjoined to restrain from taking further action until the matter is finally determined.This is consistent with previous judicial decisions in Nigeria.
Notwithstanding this action, the Company will continue to engage with the Nigerian Authorities to try and ensure an amicable resolution in the best interests of the Company, its stakeholders and the Nigerian Authorities Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made. As advised previously, we will keep you updated as the matter unfolds. I encourage you to continue focusing on our customers and strive to keep our promise to provide the bold, new Digital World to them.