TheCable

MTN Group shares fell after the house of representatives suspended the negotiation of the company’s outstanding $3.9 billion fine, brewing uncertainties.

The stock declined as much as 2.9 percent, the most since May 12, trading 1.5 percent lower at 126.50 rand Monday morning, valuing the company at $15 billion (233 billion rand), Bloomberg is reporting.

The shares have plunged almost 35 percent since the fine, originally set at $5.2 billion, was levied in October, 2015.

“Any delays in finding a resolution for the MTN fine will play into trading and keep MTN’s share price suppressed,” Peter Takaendesa, an analyst at Mergence Investment Managers, told Bloomberg.

“The big event to watch this week will be MTN’s annual general meeting, where the market might also get additional clarity.”

The uncertainties regarding the Nigerian Communications Commission (NCC) has seen the company’s stock decline, costing it its title as Africa’s biggest wireless company by market capitalization.

“MTN cautions shareholders not to make any decisions based on media reports,” Chris Maroleng, MTN spokesperson, said.

Lawmakers in the Nigerian lower chamber have set up a committee to investigate the MTN fine, following the failure of Ferdinand Moolman, MTN CEO, to appear before the house, stalling the resolution of the fine.

Victor Oluwadamilare, special adviser to the minister of communications, has said “until they are through with it (investigations), nothing can be done”.

“The federal government, the Nigerian Communications Commission and the Ministry of Communications can do nothing about the MTN case until the committee concludes its thorough investigation,” Oluwadamilare said.

“There’s no point dealing with a particular organization from different fronts. It would be counter-productive.”

Phuthuma Nhleko, the company’s executive chairman, returned to the helm in November for a six-month term to resolve the crisis, yet he remains in charge having not fulfilled his mandate.

He will address shareholders at the annual meeting in Johannesburg on Wednesday.

MTN said last week that it will be investing as much as $1 billion in the Nigerian subsidiary in 2016 alone.