Shares in MTN Group surged 4 percent on Friday with traders attributing the rise to news that Nigeria’s central bank was on the verge of reaching an agreement over a $8.1 billon dispute with the South African telecoms group.
The stock rose as much as 4.1 percent before trimming gains to trade 2.14 percent higher at 87.6 rand as of 0900 GMT.
“Looks like there’s something that going to be finalised in Nigeria and the share price is reflecting that,” said Ryan Woods of Independent Securities.
A second trader said the disputed amount could be reduced.
It would be recalled that the Central Bank of Nigeria had commenced a review of the information provided by telecoms giant, MTN, and four banks sanctioned over alleged illegal repatriation of funds.
The apex bank said the review of details submitted by the four banks, accused of helping the South African telecoms company to illegally repatriate $8.1 billion, is being done with a view to reaching an “equitable resolution.”
The central bank had on August 29 ordered MTN and the four banks to bring $8.1 billion back into Nigeria that it alleged the telecoms firm sent abroad in breach of foreign exchange regulations. The development affected shares in MTN which fell nearly a third in Johannesburg stock market after the announcement.
The apex bank thereafter fined and debited the four banks including Standard Chartered PLC, fined 2.4 billion naira ($7.86 million); Stanbic IBTC Bank PLC, fined 1.8 billion naira; Citibank, fined 1.2 billion naira; and Diamond Bank PLC, fined 250 million naira.
