MTNOY MTN Group Ltd (PK)

By Alexandra Wexler

JOHANNESBURG--Telecom giant MTN Group Ltd. (MTN.JO) said Friday that Nigerian authorities have reduced the $5.2 billion fine imposed on the company in October by 25%, not the 35% announced Thursday.

The Nigerian Communications Commission informed MTN on Nov. 2 that it had reduced the fine to $3.4 billion, payable by Dec. 31. But in a second letter on Dec. 3, Nigerian authorities said that the fine had actually been reduced to $3.9 billion, still payable by the end of the month. No details were given as to how the fine reduction had been determined in either instance, MTN said.

In October, the NCC fined MTN's Nigerian unit roughly a quarter of the country's federal budget for allegedly missing a deadline to deactivate 5.1 million unregistered SIM cards, under regulations meant to combat terrorism.

MTN, which is Africa's largest telecommunications company with 233 million subscribers in 22 countries, said it is carefully considering both the NCC's first and second letters, but added that Executive Chairman Phuthuma Nhleko "will immediately and urgently re-engage with the Nigerian authorities before responding formally," to ensure the best-possible outcome for the company. MTN once again advised shareholders to continue to exercise caution when dealing in the company's securities.

-Write to Alexandra Wexler at alexandra.wexler@wsj.com

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(END) Dow Jones Newswires

December 04, 2015 02:18 ET (07:18 GMT)

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