SENS Note - 04 December 2015

MTN - further update on fine & cautionary

On 3 December 2015 shareholders were informed that MTN had received a formal letter dated 2 December 2015 from the NCC (the First Letter) informing the Company that, after considering the Company’s request, it had taken the decision to reduce the fine imposed on the MTN Nigerian business from the original NGN1 040 000 000 000 (One Trillion, Forty Billion Naira) (the Original Fine) to NGN674 Billion, which had to be paid by 31 December 2015. The fine relates to the late disconnecting of 5.1 million MTN Nigerian subscribers in August and September 2015. This was a reduction of 35% of the Original Fine. Late on 3 December 2015, the day after receipt of the First Letter, the Company received a further letter from the NCC dated 3 December 2015 (the Second Letter). The Second Letter, which was stated to supersede the First Letter, informed the Company that the fine had actually been reduced by 25% to NGN780 Billion and not by 35% to NGN674 Billion, as was stated in the First Letter. The payment date remained 31 December 2015. Neither the First Letter nor the Second Letter sets out any details on how the reduction was determined. The Company is carefully considering both the First Letter and the Second Letter, and the Executive Chairman Phuthuma Nhleko will immediately and urgently re-engage with the Nigerian Authorities before responding formally, as it is essential for the Company to follow due process to ensure the best outcome for the Company, its stakeholders and the Nigerian Authorities, and accordingly all factors having a bearing on the situation will be thoroughly and carefully considered before the Company arrives at a final decision. Shareholders are therefore advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made.

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