The claims amount to almost all of MTN’s market value of about $12 billion, SARB said. That could also lead to a “worst-case scenario” of MTN pulling out of Nigeria, which would increase the company’s exposure level to reputational risk, it added.
Nigeria’s central bank alleged in late August that MTN and four banks — Standard Chartered Plc, Citigroup Inc, Stanbic IBTC Plc and Diamond Bank Plc — illegally repatriated the money from Nigeria. MTN sought an injunction in early September to buy itself time to fight the claim in its biggest market, which has wiped 18% off its market value within two weeks.
The shares traded 0.6% higher at 89.50 rand at the market close on Wednesday, valuing the company at 169 billion rand ($12.1 billion).
- Bloomberg