Sasfin Securities deputy chairman David Shapiro said MTN\u2019s refusal to answer questions about trouble at the company resulted in him divesting from the network.<\/p>\n
MTN has faced many challenges recently, including a $3.2-billion fine in Nigeria for not disconnecting unregistered SIMs.<\/p>\n
MTN was\u00a0criticised for poor communication regarding the fine and related issues, and this is one of the reasons why Shapiro sold his shares in the company.<\/p>\n
Speaking on BusinessDay TV<\/strong><\/a>, Shapiro said that \u201cas soon as you smell trouble at a company\u201d, you should \u201cjust go\u201d.<\/p>\n \u201cSloppiness in one area points to sloppiness in another area,\u201d said Shapiro.<\/p>\n He said analysts asked MTN questions after they saw trouble, but they could not get answers from the company.<\/p>\n \u201cFrom an investment point of view, I am gone.”<\/p>\n Shapiro said MTN may defend itself, but questions remain on why the company could not provide answers to the questions from analysts.<\/p>\n American investment manager James (Jim) Chanos recently said<\/strong><\/a> South Africa is a wreck and Nigeria is basically a failed state, which puts MTN at risk because of its exposure in the two countries.<\/p>\n Speaking at the Sohn Conference, Chanos said his short pick was MTN, because it generates most of its money from Nigeria and South Africa.<\/p>\n As these two countries are struggling economically, MTN will struggle and makes for a good share to short, he said.<\/p>\n MTN spokesperson Chris Maroleng hit back<\/strong><\/a>, saying the prospects of MTN remain positive and unchanged.<\/p>\n Maroleng said Shapiro’s complaints are likely referring to the MTN Nigeria fine, as well as the appointment of a new Group CEO.<\/p>\n Maroleng said\u00a0MTN is not always in a position to provide details on the MTN Nigeria fine, as discussions with authorities are ongoing and remain confidential.<\/p>\n \u201cRegarding the new Group CEO, MTN has indicated that we anticipate the appointment of a new CEO to be concluded over the next few months,\u201d he said.<\/p>\n He said stakeholders, including investors, may understandably be frustrated by a lack of regular updates around these issues.<\/p>\n \u201cHowever, given the importance of these matters, as well as [their confidential nature], MTN will continue to keep the market and all our stakeholders informed about any material updates through SENS.”<\/p>\n He said MTN has stepped up engagement with stakeholders over the past six months, given the significance of the Nigerian fine on its business.<\/p>\n MTN CEO scores R40-million salary<\/strong><\/a><\/p>\nShort MTN: investor<\/h3>\n
MTN responds<\/h3>\n
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