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

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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.

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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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