Why the JSE suspended trade in MTN’s plummeting shares (and what'll happen now)

The JSE suspended trade in MTN’s shares on Monday.

This followed more reports regarding the proposed $52bn fine by the Nigerian government.

MTN reiterated that it’s still engaging with Nigerian authorities.

The company says it will inform shareholders of material developments.

Shares in the mobile phone operator dropped six percent at one point on Monday.

The Money Show’s Bruce Whitfield interviewed Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management.

Scroll down for quotes from the audio below.

I don’t think MTN is handling this very well. They think it’s just a nightmare that’ll go away.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

MTN violated regulations 28 times.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

This is a lesson in how NOT to solve a problem.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

The 27 previous infractions by MTN resulted in much smaller fines.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

Culture eats strategy for breakfast. MTN has a culture of flying close to the sun. It’s not surprising that something like this has happened.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

If you get caught, you get caught. MTN got caught.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

MTN has a wonderful strategy, but not the culture to execute. I would not invest in MTN.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

MTN has to let the CEO go. They must fix their culture.

Hlelo Giyose, Chief Investment Officer at First Avenue Investment Management

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