Standard Bank withdraws MTN Nigeria-related cautionary

28 September 2018

Mergers, Acquisitions and Financial Results

Standard Bank Group has withdrawn a cautionary announcement to shareholders related to demands placed on it by Nigeria’s central bank (CBN) after receiving a letter from the CBN promising a review of the situation.

This comes after Bloomberg reported last week that Nigeria wanted to end a dispute with MTN Group over a claim that the telecommunications operator illegally transferred $8.1-billion out of the country, an indication that relations between the two parties had started to thaw.

Standard Bank issued the cautionary about the Nigeria situation on 30 August about a proposed penalty on Stanbic ITBC Bank related to the MTN transfers.

The CBN has confirmed that the bank will not be debited for $2.6-billion, which the CBN had previously suggested that the bank should also be prepared to refund

“Shareholders are hereby notified that the CBN has written to advise the bank that it will examine new submissions and documentations made by the bank, and, where justified, it will review its earlier decision on the penalty it imposed on the bank. The bank had communicated that it believed that it had acted properly in an agency capacity,” Standard Bank said.

Source: TechCentral