MTN buys Nigerian Visafone despite fine uncertainty

South African telecoms
group MTN ( MTNJ.J ) has bought Nigerian
internet provider Visafone to improve its

broadband services in its biggest market, it said on Friday, as the company awaits a ruling on a $3.9 billion Nigerian fine.
MTN Nigeria executive Amina Oyagbola said the acquisition, already completed, would enable Africa's biggest mobile phone group to roll out new services in the continent's most populous nation, which is the company's
largest market by sales.
Terms of the acquisition were not outlined in the statement and MTN declined a request for details of the deal. Visafone was not immediately available for comment.
MTN's expansion in Nigeria comes three
months after Nigeria's telecom regulator fined it $5.2 billion - more than the past two years of the company's profits - for failing to disconnect
unregistered lines, before reducing the penalty by 25 percent last month after pleas for leniency.
The communications minister has said Nigeria does not want MTN "to die" from the fine.
The operator refused to pay the reduced fine, saying in December that it would challenge the penalty in a Lagos court, and is awaiting the ruling.
"The acquisition of Visafone highlights MTN's
commitment to Nigeria," Oyagbola said in an
emailed statement.
"The acquisition ... is also reflective of our
concerted efforts to deepen the growth and
rollout of broadband services across the
country," the statement said.
Visafone had 2.2 million subscribers at the end
of 2014, according to the telecoms regulator.
MTN has around 60 million subscribers in
Nigeria.