MTN bond yields soar to record as shares fall to 3year low


MTN Group Limited dollar bonds plunged for a third day, driving yields to record highs, as shares in Africa largest mobile phone operator extended a decline to a three-year low amid a lack of clarity over a $5.2 billion fine the company faces in Nigeria.

Trading in MTN stock was suspended for more than three hours on Monday pending a statement from the Johannesburg based company, in which it said talks with Nigeria regulator were continuing, without giving details.

According to Bloomberg, the shares fell 6.1 per cent after trading resumed to 148.17 rand by the 5 p.m. close in Johannesburg, the lowest since July 2012.

The shares had dropped as much as 9.7 per cent before trading was halted following a report by CAJ News in Nigeria that MTN had failed to convince the Nigerian Communications Commission to lower the penalty.

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