MTN still in talks with NCC about $5.2 billion fine, as shares slide

The Johannesburg Stock Exchange on Monday halted trading in the shares of MTN Group Ltd after the Nigerian Communications Commission, (NCC), slammed an unprecedented N1.04 trillion ($5.2 billion) fine on the telecom operator.

The company's bonds reportedly dropped for a third day, falling as much as 9.7 percent before paring losses and was the biggest decliner on the benchmark FTSE/JSE Africa All Share Index according to Bloomberg. 

The site reported that "Trading was halted with the stock 5.3 percent down at 149.48 rand by 10:33 a.m. in Johannesburg."

Telecoms giant, MTN was fined last week by Nigerian regulator NCC, for failing to disconnect about 5.1 million unregistered or incompletely registered subscribers from its network.

The NCC had in August directed mobile telecoms companies to deactivate all unregistered SIM cards or face severe sanctions, a deadline MTN apparently missed, prompting the NCC to slam a 200,000-naira ($1,013) fine for each unregistered SIM.

Although the Johannesburg Stock Exchange allowed trading to resume in MTN’s stock after a three-hour stoppage earlier on Monday, the shares had dropped as much as 9.7 percent following a report that MTN had failed to convince the NCC to lower its penalty.

The firm has up to November 16 to pay the fine.