Telecom giant's shares crashes in biggest stock decline since 1998

folarin okunola

October 27, 2015 2:42 PM

The stock declined more than 12 percent, the biggest one-day decline since November 1998, to 167 South African Rand – the company’s lowest closing price since June 2013.

A customer leaves an MTN shop in Johannesburg April 10, 2012. REUTERS/Siphiwe Sibeko

According to various media reports, shares of the MTN Group, the largest telecommunications provider in Africa, has experienced its biggest plummet yet in nearly 17 years.

According to a report by Bloomberg, the crash comes after the company’s Nigerian arm was fined a shocking $5.2 billion for failing to disconnect customers with illegally registered SIM cards.

The report further reveals that the stock declined more than 12 percent, the biggest one-day decline since November 1998, to 167 South African Rand – the company’s lowest closing price since June 2013.

READ: Telecoms giants loses over 5 million subscribers

The Johannesburg-based company is now valued at $23 billion, according to a report by Techloy.

The report further reveals that the company is the biggest loser in percentage on the benchmark FTSE/JSE Africa All Share Index, with its security weighing more than any other on Monday.

In the meantime, the company is also aid to be in talks with the Nigerian Communications Commission in a bid to resolve the issue.

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