Business
Why MTN Quit Towers Businesses In Ghana And Uganda
Africa’s biggest telecome companyMTN Group, has said it plans to quit it’s stakes in Ghana and Uganda is in order to concentrate on its high-growth markets in Africa, especially Nigeria, and in the Middle East.
MTN Group listed its shares on the Ghana Stock Exchange (GSE) in 2018, while in Uganda, it had been speculated that it was planning to join the Uganda Securities Exchange.
The firm has one of its biggest markets in Nigeria, with the country, being the largest economy on the continent, contributing a large chunk to its overall turnover over the years.
The telecommunications giant only listed its Nigerian business on the Nigerian Stock Exchange (NSE) in May 2019 after years of foot dragging it.
According to a report by Reuters, MTN Group is selling its 49 percent holdings in Ghana Tower Interco B.V. and Uganda Tower Interco B.V. to AT Sher Netherlands Coöperatief U.A. for $523 million.
The company explained that it wants to shed loss-making e-commerce assets and exit countries where it has no prospect of reaching the top-two spots in terms of market share, unlike in Nigeria, where it is the market leader.
The sale is expected to close in Q1 2020 and gives MTN Group, which has its base in South Africa, with a profit of six billion rands ($425.74 million).
In a statement, the company said, “We remain focused on continuing to execute on the important strategic priorities of reducing debt, simplifying the portfolio and reducing risk.’’
On Thursday, MTN Nigeria informed local investing community that it has finalised the redemption of MTN Nigeria preference shares, raising $315 million, with proceeds to be used to pay down its Dollar-denominated debt and for general corporate purposes.
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