MultiChoice Group Ltd was ordered by a Nigerian tribunal to pay 50% of a disputed R65 billion tax bill, which is only the latest crisis facing a South African company in the continent’s most populous nation.
Shares in Africa’s biggest pay-TV provider slumped after Nigeria’s Federal Inland Revenue Service imposed the penalty as a condition to an appeal being heard in a Lagos court. The stock declined 8% by the close in Johannesburg on Wednesday, nearing 11-month lows.
MultiChoice disputes the amount it has to pay – stating that it owes far less – and continues to engage with authorities according to a statement emailed by the company. The firm is the operator of DSTV, a satellite TV provider across sub-Saharan Africa.
“The market needed quicker communication from MultiChoice as it’s unsure what the company’s position is and how serious the situation is,” said Greg Davies, a money manager with Cratos Capital in Johannesburg.
Sources: BusinessTech
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