MTN Group is in advanced talks to sell stakes in tower assets in Ghana and Uganda worth as much as ZAR 8 billion as it seeks to accelerate a broader disposal plan, Bloomberg reported. MTN plans to exit joint ventures with American Tower Corp, which expanded on the continent with the acquisition of Eaton Towers in May. That will help MTN meet its target of generating ZAR 15 billion in asset sales over three years, MTN said.
The strategy has not gone entirely to plan since it was announced in March. A disposal of a majority stake in Botswana’s Mascom for USD 300 million has been scrapped, and shares in e-commerce group Jumia Technologies have plunged since the April initial public offering, making it less viable for MTN to sell a stake in the near term. MTN’s Jumia interest is now worth less than USD 100 million, CEO Rob Shuter said, adding that its regrettable that the value has gone down so much.
Other proceeds could be generated by the redemption of the Nigeria unit’s preference shares, which MTN values at USD 315 million, chief financial officer Ralph Mupita said. The group is awaiting a ruling from the central bank on that matter.
A proposed sale of IHS Towers – which is separate from the ZAR 15 billion plan – may be revived as shareholders including MTN prepare another attempt at an IPO in 2020, people familiar with the matter said.
MTN has been exploring asset sales while focusing on key markets such as Nigeria.
Source: telecompaper.com
