MTN Group, Africa’s largest telecommunications company, has announced plans to generate over 15 billion rand ($1.05 billion) through asset sales within three years, citing a strategic shift toward high-growth markets in the Middle East and Africa.
The company, which reported an 85% increase in 2018 headline earnings per share (EPS) to 337 cents, is divesting non-core assets including its minority stake in Botswana’s Mascom, sold for $300 million, and its European operations in Cyprus. Investments in e-commerce platforms like Jumia and tower companies were valued at 40 billion rand ($2.7 billion) and will also be liquidated.
MTN’s share price rose 7.2% to 81.70 rand on the Johannesburg Stock Exchange following the announcement. The company emphasized that proceeds from its 23 billion rand stake in IHS, a cell tower builder, would not count toward the 15 billion rand target.
Founded in 1994 after apartheid, MTN has faced regulatory hurdles globally. Its Nigerian unit, responsible for a third of group revenue, is set to float by June 2023 after resolving disputes, including a $53 million settlement with the Central Bank of Nigeria and a $2 billion tax battle. The company also faces scrutiny in Uganda, where four executives were recently deported over national security allegations.
CEO Rob Shuter, appointed in 2017, has prioritized expansion into mobile financial services and music streaming, following a 2015 $1.7 billion fine in Nigeria that was later reduced to $530 million after concessions.
